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Industrial Organization

Industrial Organization. What is it? Why study it?. Competition. Assumptions Homogeneous Goods Perfect Information Price Taking No Transactions Costs No Externalities Free Entry and Exit Perfect divisibility of output Profit Maximization. Price Elasticity.

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Industrial Organization

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  1. Industrial Organization • What is it? • Why study it? This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  2. Competition • Assumptions • Homogeneous Goods • Perfect Information • Price Taking • No Transactions Costs • No Externalities • Free Entry and Exit • Perfect divisibility of output • Profit Maximization This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  3. Price Elasticity • Price Elasticity of Demand (ε) • Firm • Market • Short vs. Long Run • Price Elasticity of Supply (η) • Firm • Market • Short vs. Long Run This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  4. Residual Demand $ / Q $ / q So $6 $5 D Residual Demand 100 Firm i‘s output, q 9,950 10,000 10,050 Industry Output, Q This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  5. Are Farmers Price Takers? This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  6. Efficiency • Production • Consumption • Consumer Surplus • Producer Surplus • Deadweight Loss This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  7. Maximizing Total Surplus $ / Q S $6 D 10,000 Industry Output, Q This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  8. Restrictions on Entry in the Long Run MC $ / Q S100 firms $ / q ATC S150 firms D A firm’s output, q Industry Output, Q This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  9. Barriers to entry and Exit • Entry Barriers • Exit Barriers This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  10. Externalities $ / Q Pollution MC + Private MC Private MC D Industry Output, Q This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  11. Blank Space This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  12. Blank Space This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

  13. Blank Space This slideshow was written by Ken Chapman, but is substantially based on concepts from Modern Industrial Organization by Carlton and Perloff, 4th edition, McGraw-Hill.

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