Content
4.0 Price and output strategy
7.0 Influences of different cost
窗体顶端
1.0 two characteristics of oligopoly
异族通婚The production and sale of a commodity from the market, few companies controlled by veral major market structure.
Features:
(1) interdependence is the basic characteristic of oligopoly markets with independent features, but their actions affect each other and interdependent. This oligopoly firms can reach a total of a variety of ways cooperation can sign an agreement to cretly understanding. A few firms account for a large market share so that the companies have very strong monopoly power.
(2) The basic factors is the existence of the industries obvious economies of scale of economies of scale make large-scale production has a great advantage.high profits will attract more companies to enter the industry and profits to the company to finance development. large companies growing, small companies can not survive the final formation of a small number of highly competitive business situationcustoms.
2.0 chart interpretation
1. Markets on the same price as the price is quite a long time, rigid, demand and cost changes, prices are unchanged.
2. In this regard, Sweezy has been identified from a price starting oligopolistic market Illustrated with a kinked demand curve
3.As long as the MC curve and the MR curve intercts the MR curve discrete part of the profit maximizing production and sales and prices are unchanged.
4.Becau prices during this period is relatively stable, the performance of the adhesivefunk you是什么意思 . Abduction of the model ud to analyze the folding of the demand curve oligopoly.
The reasons for the formation of this demand curve:
1. the company to rai prices, and the other a monopoly firms in the industry kept unchanged, the company was forced to reduce sales .
2 If the company cut prices, other manufacturers will follow price cuts in order to avoid losing their market The manufacturers can lower prices to increa sales of small.
3.0 my spring festivalanother market structure and suggest two characteristics of this market structure.
I would choo the monopoly.正确的洗头方法 There is only one ller on the market, it controls all of the
industry supply. In the monopoly market, vendors and the industry completely overlap the two concepts, the industry's only company is a monopoly company, and this reprents a monopoly industry vendors. Monopoly vendor products do not substitute very similar to a monopolist control becau all the supply, and the product has a permanent feature, so the price of monopoly is the decision makers who .
Price Discrimination: A monopolist can change the product’s price and quality. He lls more quantities products but charges less prices to against the products in a highly elastic market and lls less quantities that charging high price in a less elastic market.
Single ller: In a monopoly market, there is one ller of the good who products the entire output.the firm and the industry are synonymous.
4.0 Price and output strategy
马云斯坦福大学演讲
This diagram shows that company makes the price and output strategy in competitive market.
●In the short run MC curve is supply curve of a enterpri in competitive market that slopes upwards. When price (MR) is higher then MC, the enterpris its output, vice versa.
mmmb●In the long run, supply curve is a horizontal one due to free entry and exit in the industry.
一般将来时态●In the long run, lowest point of ATC curve is tangent on MR.
●If the point is higher than MR, company los money
●If the point is lower than MR, there is economic profit in there, more enterpris come in this industry, MR will be lower.
5.0 Roles of Profit in a Market Economy
Principle of profit maximization: To market signals is to increa profits, market to other producers. When existing firms are earning huge profits, this signal can be profitable at both ends of the project, in order to protect its long-term market position. Virgin moblie have more customers will bring more profits Market Entry: Great profit if the company had many other companies to enter this industry, there are many new enterpris to enter the market. Efforts to increa industry competition, new technologies and new products to increa speed becomes faster.邻邦richardbransan trade to the correct way of making trade after three years he turned a profit.makesure Make it more companies entering this business, so to
get more profits
