8.1 Learning Outcomes
1. Define monopoly, oligopoly, monopolistic competition, and perfect competition 2. Distinguish between four market structures 3. Explain the short-run output rule and the break-even price
4. Explain the shut-down rule 5. Explain why the short-run supply curve is positively sloped 6. Explain why the long-run industry supply curve may be positively sloped 7. Describe the short-run and long-run effects of changes in demand for an increasing-cost industry 8. Describe the short-run and long-run effects of changes in demand for a constant-cost industry
8.2 Action Required:
Read the following to prepare for this week:
- Survey of Economics, Chapter 6: Perfect Competition
MIT OpenCourseWare video lecture series, “Competition I”
8.3 Test your Knowledge (Question):
Watch the following video(s), which you can access in the Weekly Media object or by clicking on the link(s) below: and answer the question. http://www.youtube.com/watch?v=jDnoR7IF_eY&list=SP61533C166E8B0028&index=11
Q1 Refer the video, in perfect competition, ‘firms are price taker’. With help of an example, explain how firms in perfect competition are price takers?
- Answer the question in test your knowledge section.
- Post your answer in the discussion board using the discussion link below (Week5: Interactive learning Discussion)
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