Introduction to Competitive Markets

[@DOHC2L]

The key aspect to this analysis is that price is always set by the market supply and market demand, not by individual buyers or sellers. This is what's known as "Price Theory". The role of firms as "price takers" is the most fundamental aspect of microeconomics, and it's also the least known aspect of economics. Business schools do not teach it; most people just believe firms set the price of their goods but that is not so! Good video Jodi.

[@ShrimperSmith]

Intelligence is such an attractive trait... Thank you!!

[@Wilberforce23]

great video as usual. thanks Jodi.

[@DOHC2L]

@Scientisticsoviet I shouldn't have said the math would be more complicated. I should have said the assumptions would tend to weaken each other without assuming perfect competition. If we didn't assume perfect competition we would have a whole lot of questions arise which would ~lead us to doubt~ one or more of the other assumptions. There are four assumptions of perfect competition but if we didn't assume perfect competition we'd conclude something that undermines one of the other assumptions.

[@The3nlightened0ne]

Market demand is given as QD = 200 - 3P. Market supply is given as QS = 2P + 100. Each identical firm has MC = 0.5Q and ATC = 0.25Q. What quantity of output will a typical firm produce?

[@DOHC2L]

@Scientisticsoviet "there are few markets that satisfy the conditions of perfect competition..." Competition creates markets. Perfect competition is a simplifying assumption economists use to create economic models; The economic models are needed to understand the dynamics of how markets work in the real world. All competition works the same way whether or not the market is highly competitive or has very little competition. Assuming perfect competition is needed to make the models simpler.

[@ananylakhera1711]

Are u an economics hons student

[@shaunshaun88]

i love market structure even though it takes close to 1 hour to complete one question

[@hongmahamat6574]

thanks to help

[@DOHC2L]

@Scientisticsoviet "Um, when perfect competition does not hold, we do get instances where suppliers can price setters..." Perfect competition does not exist in the real world! Perfect competition is only an ASSUMPTION for creating economic models!!!!! The economic models do NOT predict perfect competition!!! Economic models can't be created without assuming perfect competition because the math would be too complicated. I thought you understood this before but now I'm not so sure you do.

[@angelaconcerman164]

Hmm? Why is it considered competitive?

[@jadedconformist]

Mimosa party ^^. You are too much, girl