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The company is able to collect a price based on the average revenue (AR) curve. The difference between the company's average revenue and average cost, multiplied by the quantity sold (Qs), gives the total profit. A short-run monopolistic competition equilibrium graph has the same properties of a monopoly equilibrium graph.
The correct sequence of the market structure from most to least competitive is perfect competition, imperfect competition, oligopoly, and pure monopoly. The main criteria by which one can distinguish between different market structures are: the number and size of firms and consumers in the market, the type of goods and services being traded ...
There are four basic types of market structures in traditional economic analysis: perfect competition, monopolistic competition, oligopoly and monopoly. A monopoly is a structure in which a single supplier produces and sells a given product or service.
Product differences are the root cause of manufacturers' monopoly, but because the differences between products in the same industry are not so large that products cannot be replaced at all, and a certain degree of mutual substitutability allows manufacturers to compete with each other, so mutual substitution is the source of manufacturer ...
The emergence of oligopoly market forms is mainly attributed to the monopoly of market competition, i.e., the market monopoly acquired by enterprises through their competitive advantages, and the administrative monopoly due to government regulations, such as when the government grants monopoly power to an enterprise in the industry through laws ...
One major difference between varying industries is capacity constraints. Both Cournot model and Bertrand model consist of the two-stage game; [ clarification needed ] the Cournot model is more suitable for firms in industries that face capacity constraints, where firms set their quantity of production first, then set their prices.
The difference between monopoly and other models is that monopolists can price their products without considering the reactions of other firms' strategic decisions. Hence, a monopolist's profit maximising quantity is where marginal cost equals marginal revenue.
1. Each firm is presumed to be able to differentiate its product from that of its rivals. Cars are a good example here; they are very different yet in direct competition with each other. This means there will be some customer loyalty, which allows for some flexibility for the firm to move to a higher price.