tailieunhanh - THẠC SỸ KINH TẾ - KINH TẾ VI MÔ - CHAPTER 13

Differences in tastes, desires, incomes and locations of buyers, and differences in the use which they wish to make of commodities all indicate the need for variety and the necessity of substituting for the concept of a “competitive ideal,” an ideal involving both monopoly and competition. | CHAPTER 13 Imperfect Competition and Firm Strategy Differences in tastes desires incomes and locations of buyers and differences in the use which they wish to make of commodities all indicate the need for variety and the necessity of substituting for the concept of a competitive ideal an ideal involving both monopoly and competition. Edward Chamberlin We have so far considered two distinctly different market structures perfect competition characterized by producers that cannot influence price at all because of extreme competition and pure monopoly in which there is only one producer of a product with no close substitutes and whose market is protected by prohibitively high barriers to entry. Needless to say most markets are not well described by either of those theoretical structures. Even in the short run producers typically compete with several or many other producers of similar if not identical products. General Motors Corporation competes with Ford Motor Company Chrysler Corporation and a large number of foreign producers. McDonald s Corporation competes with Burger King Corporation Hardees and a lot of other burger franchises as well as with Pizza Hut Popeye s Fried Chicken and Long John Silver s. People s Drug stores compete directly with other drug chains and locally owned drugstores and indirectly with department and discount stores that sell the same non-drug products. In the long run all these firms must compete with new companies that surmount the imperfect barriers to entry into their markets. In short most companies competing in the imperfect markets can cause producers to be more efficient in their use of resources than under pure monopoly although less efficient than in perfect competition. One word of caution however The study of so-called real-world market structures can be frustrating. Although models may incorporate more or less realistic assumptions about the behavior of real-world firms the theories developed from them are conjectural. At best .

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