Demand and Supply (0)

Sarnased õppematerjalid

5

docx

Monopolistic competition

who recognize their interdependence in the market; products may be homogeneous or differentiated. Monopolistic Competition · Large number of sellers · relative ease of exit / entry · products are differentiated ­ actual differentiation ­ perceived differentiation Only difference from pure comp. is that the demand faced by the firm is not perfectly elastic; MR will lie below the Demand function (AR) Relaxing the characteristic of outputs from homogeneous to "differentiated products" was the basic change from the purely competitive market model. Thedifferentiation of output results in the demand faced by each seller being less than perfectly elastic. · Since there are "many sellers," many substitutes for each seller's output is implied. This suggests that the demand faced by a firm in a monopolistically competitive market is likely more elastic than in a monopoly.

Micro_macro ökonoomika

7

docx

Pure Competition

· Standardized product (a product identical to that of other producers). (ex. corn or cucumbers). · Free Entry and Exit: no significant legal, technological, financial, or other obstacles prohibiting new firms from selling their output in any competitive market No control over the price: "Price Takers" ( the firms have no market power) . ­ The individual firm has very little to no impact on the market. · Demand is perfectly elastic. · Maximizes productive and allocative efficiency. · Perfect competition includes complete information. ex. Agriculture Pure competition markets do not actually exist. · Note: Pure competition does not actually exist in our society, and the agriculture industry is the closest industry to being purely competitive. The pure competition model is used as a standard to evaluate the efficiency of our economy

Micro_macro ökonoomika

5

docx

Monopoly

maximize the satisfaction of (unlimited) wants in a cultural context. Pure competition is the ideal that is be benchmark to evaluate the performance markets. The economic theory of · monopolistic competitive markets, · oligopoly and · monopoly is used to suggest the nature of problems that may exist when firms or agents have market power and are able to distort prices away from the purely competitive optimum. The existence of market power is tied to the demand conditions the firm faces. If their product is (or can be differentiated), consumers may have a preference for one firm's output relative to others. A negatively sloped demand function (less than perfectly elastic) allows the firm to raise its price and not have its sales fall to zero. In pure competition, the firms may all try to influence market demand but individual producers do not advertise their own product. · Many agricultural markets are close to pure competition.

Micro_macro ökonoomika

7

docx

The cost of production

inputs to be used. Production is an activity where resources are altered or changed and there is an increase in the ability of these resources to satisfy wants. · Before goods can be distributed or sold, they must be produced. · Within the market model, production and costs of production are reflected in the supply function Production, more specifically, · the technology used in the production of a good (or service) · the prices of the inputs determine the cost of production. Production processes increase the ability of inputs (or resources) to satisfy wants by: · a change in physical characteristics · a change in location · a change in time · a change in ownership At its most simplistic level, the economy is a social process that allocates relatively scarce

Micro_macro ökonoomika

40

doc

Introduction of SCM

INTRODUCTION OF SUPPLY CHAIN MANAGEMENT (SCM) A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm. Supply chain management is typically viewed to lie between fully vertically integrated firms, where the entire material flow is owned by a single firm and those where each channel member operates independently. Therefore coordination between the various players in the chain is key in its effective management

Kategoriseerimata

6

docx

Market and marketing

bought or sold. A market need not necessarily mean a place of exchange. The word market is commonly used and may even mean or aim in any of the following:  Market may mean a place where buying and selling take place  Buyers and sellers come together for transaction  An organization through which exchange of goods takes place  The act of buying and selling of goods (to satisfy human wants)  An area of operation of commercial demand for commodities In addition, I have to define what is marketing. Marketing is a human activity to satisfy needs and wants, through an exchange process. A demand is a want for which consumer is prepared to pay a price. A want is anything or service the consumer desires or seek. Wants become demand when backed by purchasing power. Marketing is the creation and the delivery of a standards of living, it is finding out what customers want, then planning and developing a

Inglise keel

3

docx

Teine kodutöö aines Mikroökonoomika II

75 – 1,5*p = 1,5*p – 30 3*p = 105 p* = 35 q* = 22,5 p S 50 35 2 0 D 22, 75 q 5 Producer surplus: ((35 – 20)*22,5)/2 = 168,75 Consumer surplus: ((50-35)*22,5)/2 = 168,75 Total welfare: 168,75 + 168,75 = 337,5  EXERCISE N. 2 When the price of apple juice rises by 3%, the quantity demanded drops by 8%. Then, demand of for apple juice is elastici? Explain if yes or not and show with the calculation. Demand for juice is elastic. Proof (calculated by midpoint formula): (0,92-1)/((0,92+1)/2) E = -0,833/0,296 = -2,81; |E|= 2,81 = (1,03-1)/((1,03+1)/2) Price elasticity of demand is bigger than 1, therefore demand is elastic. EXERCISE N. 3 If my income increases by 12%, then quantity of public transportation demanded drops by 6%. I can

Mikroökonoomika

22

doc

Mikro ja makroökonoomika terminid

Kahaneva tulu seadus Law of diminishing returns Закон убывающего дохода Nihe mastaabiskaalal Shifts in the scale of production Смещение на шкале масштаба производства Eesti keeles English На русском Turg. Nõudlus ja pakkumine. Market. Demand and supply. Рынок.Спрос и предложение. Эластичность. Täieliku konkurentsi turg Perfekt competition market Рынок совершенной конкуренции Nõudlus Demand Спрос Pakkumine Supply Предложение

Majandus

Meedia

Kommentaarid (0)