PPT-Price & Output Determination Under Different Markets Structures

Duna Jogeswar Rao Price amp Output Determination under perfect Competition Under perfect competition the buyers and sellers cannot influence the market price by increasing or decreasing their purchases or output respectively The market price. Petar. . Petrov. ECON 1465, Fall 2010 . Brown University. What is a Treasury. U.S. Government debt obligations backed by its full faith and credit. Bills (< 1y), Notes (1-5y), Bonds (>5y), TIPS. 5. 23. 3. 10. Competitive . Price-Searcher Markets. Competitive Price-Searcher Markets. Firms in competitive . price-searcher. markets with low entry barriers face a downward sloping demand curve. . the Competitive Process. 5. 22. 3. 9. Price Takers . and Price Searchers. Price Takers and Price Searchers. Price takers. produce identical products . (for example. , wheat, corn, soybeans) and because the firms are small relative to the market each must take the price established in the market.. with . Low Entry Barriers. Competitive . Price-Searcher Markets. Competitive Price-Searcher Markets. Firms in competitive price-searcher markets with low entry barriers face a downward sloping demand curve. . with . High Entry Barriers. Why are Entry Barriers. Sometimes High?. Entry Barriers. A few examples of factors that may serve as ‘. barriers. ’ . to free . entry into a market:. economies of scale. 5. 24. 3. 11. Why are Entry Barriers. Sometimes High?. Entry Barriers. A few examples of factors that may serve as . ‘. barriers. ’. to free entry into a market:. economies of scale. government licensing. Topics. 1. Competitive consumer: preferences, budget sets, choices. Price and income effects.. 2. Firms: transform multiple inputs into outputs.. 3. Private ownership economy with initial ownership of goods and firms, markets, trades, prices, feasible allocation, . Pindyck. Daniel Rubinfeld. Ninth Edition. Copyright © 2016, 2012, 2009 Pearson Education, Inc. All Rights Reserved. Part Four. Information, Market Failure, and the . Role of . Government. Part 4 shows how markets can sometimes fail and explains how government intervention can be used to achieve economic efficiency.. Low Entry Barriers. Competitive . Price-Searcher Markets. Competitive Price-Searcher Markets. Firms in competitive price-searcher markets with low entry barriers face a downward sloping demand curve. . PREPARED BY. ANINDITA CHAKRAVARTY. We now proceed to explain the determination of price and output when there exists price leader­ship by a dominant firm which is having a large share of the market with a number of small firms as followers each of which has a small share of the market. . Understanding Macroeconomics. : . Our Game Plan. Understanding Macroeconomics. -- Our Game Plan. A model is like a road map. It illustrates . inter-relationships. .. We will use the circular flow of output and income between the business and household sectors to illustrate macro-economic . Money markets: debt type securities with maturity up to one . year. Capital Markets: everything else. Stock Markets. Bonds (Fixed Income Markets): bonds, loans, notes, securitizations. Financial Derivatives: Futures, Options, Swaps. Leadership . Prepared by. ANINDITA CHAKRAVARTY. Economists have developed various models concerning price-output determination under price leadership making different assumptions about the . behaviour. BEC 30325. Managerial Economics. Perfect Competition. Firms are price-takers. Each produces only a very small portion of total market or industry output. All firms produce a homogeneous product. Entry into & exit from the market is unrestricted.