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Introduction to
Part II Product and Factor Markets
previews market models discussed in chapters 23-29.
I.
Overview Please link to, use to educate, Share! 9/8/19 |
V. Competitive
Supply VI. Other Theories of the Competitive Model VII U.S. Competitive Adjustments 1945-2015 See World Competitvre Adjustment 1945 - 2015 VII. Readings
Quick Reviews
1-page per chapter Return to Economics Internet Library |
I. Overview
A. A purely competitive market exists when the number of independently acting buyers and sellers is so large that individual participants have no affect on market price and quantity. B. Products sold are virtually identical. Agricultural products such as potatoes and wheat are examples of competitively sold products. C. Pure competition industries as defined is difficult to find because some monopoly power usually exists. D. Price is determined by intersection of industry supply and demand. E. Individual firms are Price Takers as they inherit a horizontal demand-marginal revenue curve from their industry. 1. A firm can not sell above market as products are identical and no one will buy higher than market. 2. There is no reason to sell below market as it would mean less revenue and less profit.
Unit I. Review PC requires many independent
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From chapter 22 on Understanding Profit
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A. Price is higher than average total cost so total
is greater than total
cost. B. Cost includes a reasonable return on investment called "normal profit" so under this definition of cost, any profit is an excess. C. Videos 1.Profit Maximization for a Competitive Firm D. Kaufman Wisconsin-Parkside. 2. Profit Maximization in Perfect Competition F. Maclachlan 3. Perfect Competition Graphing Practice Econ in 60 seconds Unit II. Review PC making a profit doesn't last long a people see the abnormal profit and try to get some. |
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B. Perfect Competition in the Long Run from Econ in 60
seconds
Unit III. Review
III.
Purely Competitive Adjustment
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3. US Passes England/s GDP and Leads in World GDP then World Began Catching Up
Source
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4. A Few US Company Still Dominate, Many Do Not,Recovery from the Great Recession is Promising Technology will continue to make
our macro-lives better, |
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D. Citizen Well-Being is More Important and Continually Grows.
1) Our society's stability has
consistently increased US productivity
2) Scientific achievements have
continuously added to citizen
Some Successful Companies Pay Everyone Well
from economist.com 01/12/1 and 10/1/16
See
US Economic Normality 1945-2015
page 2,
IV. Economic Analysis of
Pure Competition Unit IV. Review Price equal ATC where MR = MC with no profit
V. Competitive Supply |
Econintersect: The U.S. slipped to seventh place in the ranking of economic competitiveness in the 2012. source the WEF (World Economic Forum). Last year the U.S. ranked fifth. The current result marked the fourth year of decline for the country that used to rule the competitiveness roost. More from econintersect.com. IMD Disagrees with its 2012 World Competitiveness Rankings
Editor's comment
on free trade Please |
VII. Readings A. For a conservative view of competition Read Pure and Perfect" Competition? from Capitalism Magazine By What Standard? Part 5 in a Series of articles on Capitalism, Free-competition, Antitrust, and Microsoft, By Richard M. Salsman B. Present Day Application of the Purely Competitive Adjustment C. Collaboration Competition is the New Competition D. SWITZERLAND tops the latest competitiveness ranking from the World Economic Forum |
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Best known for its annual shindig in Davos (a Swiss ski resort). It is closely followed by Singapore. Finland has topped Sweden to third place. Of the big emerging economies, China remains on top, with Brazil moving up. The most striking fall is the United States, which has dropped in the rankings for four years in a row. It is now seventh. The rankings are based on criteria such as institutions, infrastructure, financial systems, flexible labor markets, economic stability, innovations and public services. Plotting the scores against GDP per person reveals an unsurprising correlation: competitiveness brings wealth, but rich countries can most easily afford to provide the conditions for it. They can squander competitiveness too.
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Editors Note:
Comparing the U.S. to anyone
other than Germany and Japan is difficult as others are either small or
developing. Plus we get a benefit from our being the world's currency which
accrues from our being easily the world's strongest military and industrial
nation. China assembles parts from all over Asia and has a way to go to be
considered in this group.
vvgg
A Growing Nation
from Turning Point in American History
Editor's Note: S&P 500 volatility depicts the problem of growth volatility systemic to capitalism. This puts pressure on monetary and fiscal policy especially as the first is better at controlling inflation and the later better increasing a lagging Aggregate Demand . |
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