Lecture Managerial economics (8e): Chapter 7 - Samuelson, Marks

Chapter 7 - Perfect competition. This chapter and the three that follow focus on the spectrum of industry structures. Markets are typically divided into four main categories: perfect competition, monopolistic competition, oligopoly, and pure monopoly.

Managerial Economics, 8e William F. Samuelson   Stephen G. Marks ●

Chapter Seven

Perfect Competition

Everything is worth what its 

purchaser will pay for it.

~Anonymous

There has been an ongoing debate between economists  and ecologists for the past 30 years about whether or not  the world is running out of resources.

For Discussion

The basics of supply 

and demand

Shifts in Demand and Supply

Supply and demand

Figure 7.2

Shifts in supply and demand

Competitive equilibrium

Decisions of the Competitive Firm

The Firm’s Supply Curve

Long­Run Equilibrium

Market Equilibrium

Long­Run Market Supply

Figure 7.3

Price and output under 

perfect competition

competitive price and 

output in the long run

Market Efficiency

Private Markets: Benefits and Costs

The Demand and Supply of Day Care

The Day Care Market

Efficiency and Equity

Dynamic, Marketwide Efficiency

Market Competition and the Internet

A Day­Care Transaction

Figure 7.6

Regional Demand 

for Day Care

A Competitive Day­Care Market

International Trade

Tariffs and Quotas

Restricted Trade in Watches

Trade Restrictions