Microeconomics Discussion

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:

Reading

Read the following to prepare for this week:

• Survey of Economics, Chapter 6: Perfect Competition

Video:

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?

8.4 Instructions

• Answer the question in test your knowledge section.
• Post your answer in the discussion board using the discussion link below (Week5: Interactive learning Discussion)