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
E. Individual firms are Price Takers as they inherit
a horizontal demand-marginal revenue curve from
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
Why "We're Different"
Adjacent advertisements in an 1885 newspaper for the makers of two competing ore concentrators (machines that separate out valuable ores from undesired minerals). The lower ad touts that their price is lower, and that their machine's quality and efficiency was demonstrated to be higher, both of which are general means of economic competition.
From chapter 22 on Understanding Profit
A. Price is higher than average total cost so total
is greater than total
B. Cost includes a reasonable return on investment called "normal profit"
so under this definition of cost, any profit is an excess.
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.
B. Perfect Competition in the Long Run from Econ in 60
Unit III. Review
Purely Competitive Adjustment
3.US Passes England/s GDP and Leads in World GDP then World Began Catching Up
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,
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
IV. Economic Analysis of
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.
on free trade
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
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.
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.
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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