Google
Thursday 
August 16, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
PREDATORY PRICING: The process in which a firm with market control reduces prices below average total cost with the goal of forcing competitors into bankruptcy. This practice is most commonly undertaken by oligopoly firms seeking to expand their market shares and gain greater market control. Predatory price has been outlawed by antitrust laws, but it can be difficult to prove, and is thus likely exists more than most people think.

Visit the GLOSS*arama


NUMBER OF SELLERS, SUPPLY DETERMINANT:

The number of sellers willing and able to sell a good, which is assumed constant when a supply curve is constructed. The number of sellers is one of five supply determinants that shift the supply curve when they change. The other four are resource prices, production technology, other prices, and sellers' expectations.
The number of sellers willing and able to buy a good affects the overall supply. The relation is relatively straightforward. With more sellers, there is more supply. With fewer sellers, there is less supply.

All in the Numbers

The overall market supply of a good is based on the combination of supplies offered by each seller. If five firms are each willing and able to sell 100 units of a good, at the going market price, then the total market supply is 500 units. If a sixth firm should enter the market, also willing and able to sell 100 units, then the total market supply increases to 600 units. If one of the five original firms should leave the market, then the total market supply decreases to 400 units. With more sellers, there is a greater supply. With fewer sellers, there is less supply.

Shifting the Supply Curve

Number of Sellers

A change in number of sellers causes the supply curve to shift. This can be illustrated using the positively-sloped supply curve for Wacky Willy Stuffed Amigos presented in this exhibit. This supply curve captures the specific one-to-one, law of supply relation between supply price and quantity supplied. The number of sellers is assumed to remain constant with the construction of this supply curve.

Now, consider how a change in the number of sellers shifts the supply curve.

  • More Sellers: If there is an increase in the number of sellers in the market, then the supply of the good increases. It is just that simple. This is seen as a rightward shift of the supply curve. Click the [More Sellers] button to demonstrate.

  • Fewer Sellers: If there is a decrease in the number of sellers in the market, then the supply of the good decreases. Which is also straightforward. This is seen as a leftward shift of the supply curve. Click the [Fewer Sellers] button to demonstrate.

The Competition of Numbers

The number of participants on the selling side of the market is extremely important when it comes to competition and market control. Market control depends on the number of competitors. Fewer competitors means more market control for each. More competitors means less market control for each. A given seller, in general, would rather have fewer participants on the selling side, which would then give it greater market control. Good for the seller. Of course, fewer competitors and greater market control also means less efficiency. Bad for the economy.

<= NUMBER OF BUYERS, DEMAND DETERMINANT


Recommended Citation:

NUMBER OF SELLERS, SUPPLY DETERMINANT, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: August 16, 2018].


Check Out These Related Terms...

     | supply determinants | resource prices, supply determinant | production technology, supply determinant | other prices, supply determinant | number of sellers, supply determinant | demand determinants |


Or For A Little Background...

     | supply | market supply | supply price | quantity supplied | law of supply | supply curve | change in supply | change in quantity supplied | ceteris paribus | production | competition | efficiency |


And For Further Study...

     | Marshallian cross | comparative statics | competitive market | market | producer surplus | short-run production analysis |


Search Again?

Back to the WEB*pedia


APLS

WHITE GULLIBON
[What's This?]

Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway trying to buy either a 50-foot blue garden hose or a turbo-powered vacuum cleaner. Be on the lookout for infected paper cuts.
Your Complete Scope

This isn't me! What am I?

The portrait on the quarter is a more accurate likeness of George Washington than that on the dollar bill.
"If I have ever made any valuable discoveries, it has been owing more to patient attention than to any other talent. "

-- Isaac Newton, mathematician, physicist

BOA
Basic Ordering Agreement
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster