PPT-Price-Output Determination under Low-Cost Price Leadership

Leadership Prepared by ANINDITA CHAKRAVARTY Economists have developed various models concerning priceoutput determination under price leadership making different assumptions about the behaviour. 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 . 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. the Competitive Process. 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.. Basis. Basis is the difference between a cash price at a specific location and the price of a particular futures contract. The cash price offered to a grain producer for any given marketing strategy is a function of local basis.. Firm & Market. Reach Cambridge, July 2016. Vasiliki Mavroeidi. Ph.D. Candidate. Development Studies Centre, University of Cambridge. Some Rules. No talking in class while I am talking or while a student that has been asked a question is talking and/or thinking. Week 6. www.lancaster.ac.uk/postgrad/murphys4/. s.murphy5@lancaster.ac.uk. office: LUMS . C85. Past exam questions. If an indifference curve is smooth and convex to the origin, then:. The two goods are said to be convex combinations of each other. Broad topic aims.. Explain consumer equilibrium. Describe producer equilibrium. Discuss . the short run and long run cost curves. Describe the various market structures. Concept of utility . What is utility?. . PMC, MD, SMC, SMB. Efficient . vs. competitive output. with . negative. or . positive. externality. . Deadweight loss. . . Computed example. .. Efficiency with imperfect competition. . . Monopoly. Concept of price and value relationship. Pricing objectives. Factors influencing price. Costs of producing and marketing a product. Approaches to determining price. Break-even analysis. GOALS. 2. The Steps of Price Planning. SAB – 101. T-R: 9.30 am – 10.45 am. Fall 2016. Instructor: . Sankalp. Sharma. Email: Ssharma3@unl.edu. Who am I?. A word on my teaching philosophy . About this class. In class expectation . Out of class expectation. 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. . 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.. Duna Jogeswar Rao. Price & 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...