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production into a single curve, which can then be used with the total
revenue curve to determine profit.
Monopolistic Competition a type of competition within an industry
where (1) all firms produce similar yet not perfectly substitutable
products; (2) all firms are able to enter the industry if the profits are
attractive; (3) all firms are profit maximizers and (4) all firms have some
market power, which means none are price takers. Example: restaurants
B. Competition among the Few:
Monopoly a situation in which a single company or group owns all or
nearly all of the market for a given type of product or service. It is
characterized by the absence of competition, which often results in high
prices and inferior products. Example: Davao Light.
Technical Monopolies situations in which the barriers to entry for an
industry or product are so high that it is not profitable for a second
company to make an attempt. It is a monopoly that occurs when a single
firm controls manufacturing methods necessary to produce a certain
product, or has exclusive rights over the technology used to manufacture
it.
Oligopoly a situation in which a particular market is controlled by a
small group of firms. In an oligopoly, there are at least two firms
controlling the market. Example: Airline Industry (Cebu Pac, PAL, Air Asia ..
)
Incomplete Collusion
Demand Curve in economics, the demand curve is the graph depicting
the relationship between the price of a certain commodity and the
amount of it that consumers are willing and able to purchase at that given
price. It is a graphic representation of a demand schedule.
Regulated Monopolies are organizations that are granted the legal
right to operate in an environment where there is freedom form
competition. The grant to operate in this manner is given by
governmental agencies, and there is recognition that the monopoly is
counter to traditional free- market theory and policy.
Kinked Demand Curve is an economic theory regarding oligopoly and
monopolistic competition. When it was created, the idea fundamentally
challenged classical economic tenets such as efficient markets and rapidly
changing prices, ideas that underlie basic supply and demand models.
Degrees of Collusion
Marginal Revenue is the additional revenue that will be generated by
increasing product sales by one unit. It can be described as the unit
revenue the last item sold has generated for the firm.
Price Determination interaction of the free market forces of demand
and supply to establish the general level of price for a good or service.
Truncated MR