Demand - Market Structure and The Demand Curve

Market Structure and The Demand Curve

In perfectly competitive markets the demand curve, the average revenue curve, and the marginal revenue curve all coincide and are horizontal at the market-given price. The demand curve is perfectly elastic and coincides with the average and marginal revenue curves. Economic actors are price-takers. Perfectly competitive firms have zero market power; that is, they have no ability to affect the terms and conditions of exchange. A perfectly competitive firm's decisions are limited to whether to produce and if so, how much. In less than perfectly competitive markets the demand curve is negatively sloped and there is a separate marginal revenue curve. A firm in a less than perfectly competitive market is a price-setter. The firm can decide how much to produce or what price to charge. In deciding one variable the firm is necessarily determining the other variable

Read more about this topic:  Demand

Other articles related to "market structure and the demand curve, markets, demand curve, curve, market, the demand curve, curves":

Demand (economics) - Market Structure and The Demand Curve
... In perfectly competitive markets the demand curve, the average revenue curve, and the marginal revenue curve all coincide and are horizontal at the market-gi ... The demand curve is perfectly elastic and coincides with the average and marginal revenue curves ... Perfectly competitive firms have zero market power that is, they have no ability to affect the terms and conditions of exchange ...

Famous quotes containing the words curve, demand, market and/or structure:

    And out again I curve and flow
    To join the brimming river,
    For men may come and men may go,
    But I go on forever.
    Alfred Tennyson (1809–1892)

    One cannot demand of a scholar that he show himself a scholar everywhere in society, but the whole tenor of his behavior must none the less betray the thinker, he must always be instructive, his way of judging a thing must even in the smallest matters be such that people can see what it will amount to when, quietly and self-collected, he puts this power to scholarly use.
    —G.C. (Georg Christoph)

    The market came with the dawn of civilization and it is not an invention of capitalism.... If it leads to improving the well-being of the people there is no contradiction with socialism.
    Mikhail Gorbachev (b. 1931)

    The syntactic component of a grammar must specify, for each sentence, a deep structure that determines its semantic interpretation and a surface structure that determines its phonetic interpretation.
    Noam Chomsky (b. 1928)