INTRODUCTION TO MICRO ECONOMICS Dr. R. KURINJI MALAR

This document defines and describes perfect competition in three main points: 1. Perfect competition is an industry structure with many small firms producing identical products where no single firm can influence prices. New firms can freely enter and exit the market. 2. Under perfect competition, no participant is large enough to have market power to set prices for a standard product. It serves as a benchmark for comparing real markets. 3. For a market to be perfectly competitive it must meet five criteria: identical products, firms are price takers, small market share for each firm, buyers know prices, and freedom of entry and exit.

This document discusses market structures and concepts related to profit maximization. It begins by outlining the goals of firms, including profit maximization, growth, sales/revenue maximization, and market dominance. It then defines revenue, profit, normal profits, abnormal profits, and losses. The document proceeds to describe four major market structures - perfect competition, monopoly, monopolistic competition, and oligopoly. It provides assumptions, characteristics, profit maximization conditions, and graphs for each market structure. Finally, it discusses natural monopoly, price discrimination, and concludes with a description of monopolistic competition.

This document is an economics project submitted by Vaishali Bhanushali, roll number 2003, for an F.Y. Bcom class division B under the mentorship of Dr. Sujata Dhopte. It discusses the key features of different market structures including perfect competition, monopoly, and monopolistic competition. For each market structure, the summary discusses the number of buyers and sellers, product characteristics, entry/exit conditions, and impact on pricing. The document also answers questions about the features of each market structure type.

The document discusses different market structures: pure competition, pure monopoly, oligopoly, and monopolistic competition. It provides characteristics of each market structure and explores how a firm operating within each structure can influence demand, output, and prices through mechanisms like advertising and promotional efforts. The learning objectives are to understand how market structures impact business decisions and the differences between normal and economic profits.

This document discusses different market structures - perfect competition, monopoly, monopolistic competition, and oligopoly. It provides the key features of each market structure type. Perfect competition is characterized by homogeneous products, many buyers and sellers, free entry and exit, and price being determined by supply and demand. A monopoly has a single seller, no close substitutes, and the ability to influence price. Monopolistic competition involves differentiated products and some control over price. Oligopoly has few large sellers, interdependent pricing decisions, and potential for cartel formation.

Monopolistic competition and oligopoly are two market structures between perfect competition and monopoly. Monopolistic competition is characterized by many firms with differentiated products. Firms have some market power but no barriers to entry or exit. Oligopoly is characterized by a few dominant firms where the behavior of one firm depends on its competitors. Game theory is used to analyze strategic interactions among oligopolistic firms.

This document discusses different types of market structures and pricing strategies. It defines market structure as the characteristics of a market that describe the nature of competition and pricing, such as the number of firms and products. The four main types of market structures are perfect competition, monopolistic competition, oligopoly, and monopoly. It also outlines several pricing strategies such as penetration pricing, economy pricing, price skimming, and product line pricing. Pricing is influenced by factors like costs, market conditions, and perceived value.

The document discusses the concept of perfect competition in three main points: 1. Perfect competition describes a market structure where competition is at its highest level, with many small firms, homogeneous products, free entry and exit, and perfect information. 2. Under perfect competition, firms aim to maximize profits by producing at the quantity where marginal revenue equals marginal cost. 3. In the long run, if profits are above normal, more firms will enter the market, increasing supply and driving prices and profits back down to normal.

This document discusses different market structures: monopoly, monopolistic competition, and oligopoly. It provides details on: - Monopolistic competition is characterized by many firms producing differentiated products and competing on quality, price, and marketing. There is free entry and exit into the industry. - Firms in monopolistic competition operate at excess capacity and charge a price above marginal cost in the long-run. - Oligopoly is a market with a small number of firms where each firm's actions impact others. It can lead to interdependent behavior and the temptation for firms to collude.