Name the market structure(s) that it is associated with each concept Price Maker (Demand>MR) Collusion/Cartels Identical Products Price Taker (Demand=MR) Excess Capacity Low Barriers to Entry Game Theory Differentiated Products Long-run Profits Efficiency Normal Profit Dead Weight Loss High Barriers to Entry Firm = Industry MR=MC Rule

Market Structures Venn Diagram Perfect Competition Monopolistic Competition Oligopoly Monopoly No Similarities

Monopolistic Competition Perfect Competition Monopolistic Competition T.J. Hammocks Avocados Retail Stores Excess Capacity Excess Advertising Differentiated Products More Elastic demand than Monopoly 100s Identical Products No advantage D=MR=AR=P Both efficiencies Price-Taker 1000s Low barriers to entry No Long-Run Profit Price = ATC MR = MC Shut-Down Point Cost Curves Motivation for Profit Price Maker (D>MR) Some Non-Price Competition Inefficient No Similarities Oligopoly Monopoly Collusion Strategic Pricing (Interdependence) Game Theory 10 or less Price Maker (D>MR) High Barriers Ability to Make LR Profit Inefficient Unique Good Price Discrimination 1 Appliances Cars Local Utilities

Monopolistic Competition 4 Market Structures Perfect Competition Monopoly Monopolistic Competition Oligopoly # of Firms Types of Goods Barriers to Entry Control Over Price Max Profit Short-Run Profit Game Theory Loss Long-Run Equilibrium Price Quantity MC ATC D MR Price Quantity MC ATC D MR Price Quantity MC ATC MR Price Quantity MC ATC D

Monopolistic Competition Oligopoly # of Firms Types of Goods 4 Market Structures Perfect Competition Monopoly Monopolistic Competition Oligopoly # of Firms Many One Few Large Firms Types of Goods Identical Unique Differentiated Similar Barriers to Entry No barriers Extreme barriers Low barriers High barriers Control Over Price Price Taker from the industry Price Setter Greater than MC Use Game Theory Maximum Profit P=MR=MC MR=MC Short-run Profit Short-run Loss Long-run Graph QE Price Quantity MC ATC D=MR P C P C D MR Price Quantity MC ATC Q P C D MR Price Quantity MC ATC Q MC ATC D=MR P QE C Price Quantity D MR Price Quantity MC ATC Q P C D MR Price Quantity MC ATC Q P C MC ATC Price Quantity D=MR P D MR Price Quantity MC ATC Q D MR Price Quantity MC ATC Q