《管理经济学》第七章.ppt

《管理经济学》第七章.ppt

《《管理经济学》第七章.ppt》由会员分享，可在线阅读，更多相关《《管理经济学》第七章.ppt（32页珍藏版）》请在冰豆网上搜索。

CompetitiveMarketsChapter7Chapter7OVERVIEWCompetitiveEnvironmentFactorsThatShapetheCompetitiveEnvironmentCompetitiveMarketCharacteristicsProfitMaximizationinCompetitiveMarketsMarginalCostandFirmSupplyCompetitiveMarketSupplyCurveCompetitiveMarketEquilibriumChapter7KEYCONCEPTSmarketstructuremarketpotentialentrantproductdifferentiationcompetitivemarketsbarriertoentrybarriertomobilitybarriertoexitperfectcompetitionpricetakersnormalprofiteconomicprofiteconomiclossesmarginalanalysiscompetitivefirmshort-runsupplycurvecompetitivefirmlong-runsupplycurve.CompetitiveEnvironmentWhatisMarketStructure?

Marketstructureisthecompetitiveenvironment.Numberofbuyersandsellers.Potentialentrants.Barrierstoentryandexit,etc.VitalRoleofPotentialEntrantsCompetitioncomesfromactualandpotentialcompetitors.Potentialentrantsoftenaffectprice/outputdecisions.FactorsthatShapetheCompetitiveEnvironmentProductDifferentiationR&D,innovation,andadvertisingareimportantinmanymarkets.ProductionMethodsEconomiesofscalecanprecludesmall-firmsize.EntryandExitConditionsBarrierstoentryandexitcanshelterincumbentsfrompotentialentrants.BuyerPowerPowerfulbuyerscanlimitsellerpower.CompetitiveMarketCharacteristicsBasicFeaturesManybuyersandsellers.Producthomogeneity.Freeentryandexit.Perfectinformation.ExamplesofCompetitiveMarketsAgriculturalcommodities.Prominentmarketsforintermediategoodsandservices.Unskilledlabormarket.ProfitMaximizationinCompetitiveMarketsProfitMaximizationImperativeNormalprofitisreturnnecessarytoattractandmaintaincapitalinvestment.Efficientfirmscanearnnormalprofit.Inefficientfirmssufferlosses.RoleofMarginalAnalysisSetM=MRMC=0tomaximizeprofits.MR=MCwhenprofitsaremaximized.MarginalCostandFirmSupplyShort-runFirmSupplyCompetitivemarketprice（P）isshownasahorizontallinebecauseP=MR.Firmsmarginal-costcurveshowstheamountofoutputthefirmwouldbewillingtosupplyatanymarketprice.Marginalcostcurveistheshort-runsupplycurvesolongasPAVC.Long-runFirmSupplyMarginalcostcurveisthelong-runsupplycurvesolongasPATC.Inlongrun,firmmustcoverallnecessarycostsofproductionandearnanormalprofit.CompetitiveMarketSupplyCurveMarketSupplyWithaFixedNumberofCompetitorsSupplyisthesumofcompetitoroutput.MarketSupplyWithEntryandExitEntryresultsinmorefirms,increasedoutput,arightwardshiftinthesupplycurve,anddrivesdownpricesandprofits.Exitreducesthenumberoffirms,decreasesthequantityofoutput,shiftsthesupplycurveleftward,andallowspricesandprofitstoriseforremainingcompetitors.CompetitiveMarketSupplyCurveEntryandexitincompetitivemarketswillcontinueuntilP=AR=MR=MC=ATC.Thelong-runcompetitivemarketsupplycurveisahorizontallineequaltothemarketprice.Becausefirmscanmoreeasilyenterorexitinthelong-run,long-runsupplycurvestendtobemoreelasticthanshort-runsupplycurves.CompetitiveMarketEquilibriumBalanceofSupplyandDemandEquilibriumisabalanceofsupplyanddemand.NormalProfitEquilibriumWithahorizontalmarketdemandcurve,MR=P.P=MR=MC=ATC.Therearenoeconomicprofits.Allfirmsearnanormalrateofreturn.Problems1Floridaisthebiggestsugar-producingstate,butMichiganandMinnesotaarehometothousandsofsugarbeetgrowers.SugarpricesintheUnitedStatesaverageabout20perpound,ormorethandoubletheworld-wideaverageoflessthan10perpoundgivenimportquotasthatrestrictimportstoabout15%oftheU.S.market.Still,theindustryisperfectlycompetitiveforU.S.growerswhotakethemarketpriceof20asfixed.Thus,P=MR=20intheU.S.sugarmarket.Assumethatatypicalsugargrowerhasfixedcostsof$30,000peryear.Totalvariablecost（TVC）,totalcost（TC）,andmarginalcost（MC）relationsare:

TVC=$15,000+$0.02Q+$0.00000018Q2TC=$45,000+$0.02Q+$0.00000018Q2MC=TC/Q=$0.02+$0.00000036QwhereQispoundsofsugar,totalcostsincludeanormalprofit.A.Usingthefirmsmarginalcostcurve,calculatetheprofit-maximizingshort-runsupplyfromatypicalgrower.B.Calculatetheaveragevariablecostcurveforatypicalgrower,andverifythataveragevariablecostsarelessthanpriceatthisoptimalactivitylevel.Problems2Theretailmarketforunleadedgasolineisfiercelypricecompetitive.Considerthesituationfacedbyatypicalgasolineretailerwhenthelocalmarketpriceforunleadedgasolineis$1.80pergallonandtotalcost（TC）andmarginalcost（MC）relationsare:

TC=$40,000+$1.64Q+$0.0000001Q2MC=MTC/MQ=$1.64+$0.0000002QandQisgallonsofgasoline.Totalcostsincludeanormalprofit.A.Usingthefirmsmarginalcostcurve,calculatetheprofit-maximizinglong-runsupplyfromatypicalretailerB.Calculatetheaveragetotalcostcurveforatypicalgasolineretailer,andverifythataveragetotalcostsarelessthanpriceattheoptimalacti