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Perfect Competition and Monopoly: Market Structures and Firm Behavior

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Introduction to the Four Market Models

Characteristics of Perfect Competition

Revenue in Perfect Competition

Perfect Competition Profit on the Graph

Short Run Shutdown Decision

Long Run Entry and Exit Decision

Individual Supply Curve in the Short Run and Long Run

Market Supply Curve in the Short Run and Long Run

Long Run Equilibrium

Perfect Competition and Efficiency

Characteristics of Monopoly

Monopoly Revenue

Monopoly Profit on the Graph

Monopoly Efficiency and Deadweight Loss

Price Discrimination

Antitrust Laws and Government Regulation of Monopolies

Four Market Model Summary: Monopoly