Exam 3

produce a good or service that has greater value than the inputs used in its production.

At what points a profit-maximizing firm in perfect competition produces?

an industry that consists of a few firms producing a standardized or a differentiated product. strategic behavior. products are Homogeneous or differentiated. market power is limited.

Define an Oligopoly market and list its characteristics

Entry impossible

What are the major barriers to entry in the monopoly market?

business consolidation that occurs between firms that operate in the same industry

What is a horizontal merger?

if a firm chooses to maximize its profits, it must choose that level of output where Marginal Cost (MC) is equal to Marginal Revenue (MR) and the Marginal Cost curve is rising.

What is a profit maximization rule?

merger of two or more companies that provide different supply chain functions for a common good or service

What is a vertical merger?

Market structure determines whether a firm has market power, which is the ability to price a product above marginal cost and earn a positive economic profit. firm in an industry consisting of a large number of equivalently-sized rivals producing a homogeneous product has little to no market power.

Discuss different market structure with respect to the level of difficulty or firms to enter the market