By the end of this chapter, you should understand:
- perfect competition
- why a perfectly competitive firm equates marginal cost and price
- how profits and losses lead to entry and exit
- the industry supply curve
- comparative static analysis of a competitive industry
- a market in which international trade occurs
- pure monopoly
- why a monopolist’s output equates MC and MR
- how output compares under monopoly and perfect competition
- 10 how price discrimination affects a monopolist’s output and profits
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