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FIRMS IN MARKETS
?Perfect Competition???汪艳
经济管理学院
MonopolyMonopolistic CompetitionOligopoly双语教学示范课程
22013-7-23
What is a competitivemarket?
A perfectlycompetitive markethas the following characteristics:
?There are numerous buyers and sellers in the market.?The goods offered by the various sellers are largely the same (homogeneity).
?Buyers and sellers are price takers.?Firms can freely enter or exit the market.
汪艳
经济管理学院
双语教学示范课程
32013-7-23
?The actions of any singlebuyer or seller in the market have a negligible impact on the market price.
?Each buyer and seller takes the market price as given.
汪艳
经济管理学院
双语教学示范课程
42013-7-23
PPP2EP1DP3
0
Q (market)0
Q(firm)
?D curvethat firms face in this marketmust be a straight line. (P=Constant)
汪艳
经济管理学院
双语教学示范课程
52013-7-23