Barriers to entry
We will go further into the packet in the next two days to address these other objectives for monopoly. It is particularly important to be able to compare perfect competition to monopoly - this could be the second part of a long essay, i.e. the evaluation section.
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Assumptions of the model
Now that we have looked at what makes up perfect competition, we turn our attention to imperfect competition and go right to the opposite end of the market structure spectrum... monopoly. We'll start off with looking at what characterizes the market and then look at the graphs. These are a bit more complicated than perfect competition so it's important that you follow the steps so that you don't put price in the wrong place... also be neat (with a ruler!) and remembere the relationsip between MC and AC curves. The profit maximising rule is still the same.... "where MR equals MC, that is where we want to be"! The second video above is mandatory viewing for anyone who misses me showing you how to do this in class. You will receive a copy of this packet https://drive.google.com/file/d/1jyAyXxWndcYWVdPcO8AkmpURjaClI3Ia/view?usp=sharing This first class is a short one and so we will use this time to see where we are in the course, discuss what comes next (hint: we still have to go back and finish Theory of the Firm) and the changes made to the May 2021 examination session. We will do a Kahoot to see what you remember from the time of distance learning and also see whether you remember how to draw the microeconomic diagrams we were looking at before distance learning started.
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