Micro+Imperfect+Competition

Imperfect Competition

A market structure that does not meet the conditions of perfect competition, featuring elements such as price-making and differentiated products.

Perfect Competition

A market characterized by a large number of buyers and sellers, with homogeneous products and no barriers to entry, where firms are price-takers.

Monopoly

A market structure where a single firm dominates the market, setting prices and output levels, with high barriers to entry and no close substitutes.

Monopolistic Competition

A market structure with many firms selling differentiated products, where firms have some control over prices and low barriers to entry.

Oligopoly

A market structure dominated by a few interdependent firms, often involving collusion and strategic decision-making.

Price Discrimination

A pricing strategy where a firm charges different prices for the same product to different consumers, often to increase revenue.

Marginal Revenue (MR)

The additional revenue that a firm earns from selling one more unit of a good or service.

Marginal Cost (MC)

The additional cost incurred by producing one more unit of a good or service.

Normal Profit

The minimum level of profit needed for a company to remain competitive in the market, equivalent to the opportunity cost of capital.

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs.