Keyword: perfect competition
A Fable of Fruit Vendors (9/7/2009)
Fruit vendors may choose perfect competition or pricing power depending on foot traffic and other locational advantages.
Competitive Strategy (7/7/2006)
Static efficiency in mature products may be good for consumers in the short run, but dynamic efficiency in innovative products is what drives the economy and elevates consumer welfare in the long run.
Market structure taxonomy (8/8/2006)
Market structure depends on the uniqueness of the products, barrier to entry, and scale economy. Specifically, the more unique the product, the higher the entry barrier, and the larger the scale economy is, the greater the pricing power.
Noodle Price-hike Conspiracy (6/22/2006)
Price hike is difficult to sustain in commodity business with many competitors.
Pricing and economic surplus (7/7/2006)
Pricing affects how economic surplus is distributed between consumers and producers and thus the incentive and resources to come up with innovative products.
Pricing to Cost - But Which Cost? (10/13/2007)
Pricing to marginal cost may not cover fixed cost.
Profit Maximization of Price Takers (11/2/2011)
As one of many small firms, price takers are powerless to set price. They set the max-profit output by equating price with marginal cost.
Profit Maximization of Price Takers (transcript) (2/6/2012)
As one of many small firms, price takers are powerless to set price. They set the max-profit output by equating price with marginal cost.