Discus Managing in Competitive Monopolistic

Discus Managing in Competitive Monopolistic

LO1 Identify the conditions under which a firm
operates as perfectly competitive, monopolistically competitive, or a monopoly.
LO2 Identify sources of (and strategies for
obtaining) monopoly power.
LO3 Apply the marginal principle to determine
the profit-maximizing price and output.
LO4 Show the relationship between the elasticity of demand for a firm’s product and its
marginal revenue.
LO5 Explain how long-run adjustments impact
perfectly competitive, monopoly, and
monopolistically competitive firms; discuss
the ramifications of each of these market
structures on social welfare.
LO6 Decide whether a firm making short-run
losses should continue to operate or shut
down its operations.
LO7 Illustrate the relationship between marginal cost, a competitive firm’s short-run
supply curve, and the competitive industry supply; explain why supply curves do
not exist for firms that have market
power.
LO8 Calculate the optimal output of a firm that
operates two plants and the optimal level
of advertising for a firm that enjoys market
power.

Discus Managing in Competitive Monopolistic

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