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OLIGOPOLY, CONCENTRATION: Oligopoly is a market structure that contains a small number of relatively large firms, meaning oligopoly markets tend to be concentrated. A small number of large firms account for a majority of total output. Concentration unto itself is not necessarily bad, but it often leads to inefficient behavior, such as collusion and nonprice competition. Concentration is measured in three ways--market share, concentration ratio, Herfindahl index.
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Lesson 19: Monopolistic Competition | Unit 3: Output
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Page: 12 of 22
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- Let's now analyze the short-run production decision using the folowing four curves:
- Demand (Average Revenue) (D = AR)
- Marginal Revenue (MR)
- Average Total Cost (ATC)
- Marginal Cost (MC)
- Our task is to identify the firm's profit-maximizing production level.
- This level is achieved at the intersection of the marginal revenue (MR) and marginal cost (MC) curves.
- The priced that the firm charges and the price that buyers are willing to pay for this 6-unit production quantity is $4.95.
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AVERAGE REVENUE, MONOPOLY The revenue received for selling a good per unit of output sold, found by dividing total revenue by the quantity of output. Average revenue often goes by a simpler and more widely used term... price. For a monopoly average revenue is greater than marginal revenue. Average revenue for a monopoly is often depicted by a negatively-sloped average revenue curve.
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WHITE GULLIBON [What's This?]
Today, you are likely to spend a great deal of time driving to a factory outlet trying to buy either a birthday gift for your uncle or a pair of red and purple designer socks. Be on the lookout for florescent light bulbs that hum folk songs from the sixties. Your Complete Scope
This isn't me! What am I?
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In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
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"Good judgment comes from experience, and often experience comes from bad judgment." -- Rita Mae Brown ‚ Writer
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VAT Value Added Tax
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