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| Always operate in the short run, never make a profit in the long run. | ||
| MC @ ATC | ||
| The output, most Profitable | ||
| Iindustry that has many firms selling a diffferentiated product. | ||
| When a seller charges 2 or more prices for the same good or service. | ||
| (Price - ATC) X Output | ||
| TC / Ouput | ||
| TR - TR | ||
| Price X Output | ||
| The output at which the firm would produce most efficiently. | ||
| Demand line is above ATC curve. | ||
| TC - TC | ||
| Monopolist is the only firm | ||
| Produce differentiated products. Make a profit or take a lost in the short run, in the long run the firm will break even. (MOST number of firms.) | ||
| Produce all the output in an industry. No distinction in the long or short run. | ||
| Produce identical products. | ||
| An industry with just a few sellers. | ||
| Inefficient, higher prices and a lower output, always make a profit, (MOST sales.) | ||
| The HHI is the sum of the squares of the market shares (ex. 30% sq = 900%) of each firm in the industry. | ||
| The total percentage share of industry sales of the 4 leading firms. Add the top 4 companies. | ||
| A combination of firms that acts as if it were a monopoly. Most extreme case of oligopoly | ||
| Operates like the alleged Mafia. Region division of the market among the firms in the industry. | ||
| Involves price-fixing | ||
| Playing follow the leader (One company raises prices and shortly after, the other companies in the same market do the same) | ||
| Keeps the price just where it is to maximize profit. |  | |
| Mind of the consumer. | ||
| Physical differences, Convenience Ambience,Reputations, Appeals to vanity, Unconscious fears and desires. Snob appeal, Customized products | ||
| No imports -- tell us nothing about the competitive structure on the rest of the industry. | ||
| A situation where one firm is able to provide a service at a lower cost than could several competing firms. | ||
| Justify bigness because sometimes only a firm with the capability of very large output can produce anywhere close to the minimum point of its ATC |
