Upload
barnard-lawson
View
220
Download
0
Embed Size (px)
Citation preview
ANTITRUST
Music:
• Gustav Mahler, Symphony No. 1 (1888)
• Performed by Bavarian Radio Symphony Orchestra, Conductor: Rafael Kubelik (1968)
FACTORS AFFECTING DEMAND
• PERSONAL TASTE
• INCOME
• PRICE OF COMPLEMENTARY GOODS
• PRICE OF SUBSTITUTES
FIXED v. VARIABLE COSTS
• FIXED COSTS: DO NOT VARY IN SHORT RUN
• VARIABLE COSTS: VARY WITH LEVEL OF PRODUCTION
TOTAL v. AVERAGE COST
• TOTAL COST: ALL COSTS ASSOCIATED WITH PRODUCT LINE
• AVERAGE COST: MEAN COST PER ITEM PRODUCED
TOTAL v. AVERAGE COST
• TOTAL COST: ALL COSTS ASSOCIATED WITH PRODUCT LINE
• AVERAGE COST: MEAN COST PER ITEM PRODUCED– AVERAGE TOTAL COST
– AVERAGE VARIABLE COST
OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM• FUNGIBLE PRODUCT
• SUPPLIERS CAN’T AFFECT EACH OTHERS PRICING/OUTPUT
• MOBILITY/EQUALITY OF RESOURCE AVAILABILITY
• GOOD INFORMATION/LOW TRANSACTION COSTS
OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM• FUNGIBLE PRODUCT
• SUPPLIERS CAN’T AFFECT EACH OTHERS PRICING/OUTPUT
• MOBILITY/EQUALITY OF RESOURCE AVAILABILITY
• GOOD INFORMATION/LOW TRANSACTION COSTS
OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM• FUNGIBLE PRODUCT
• SUPPLIERS CAN’T AFFECT EACH OTHERS PRICING/OUTPUT
• MOBILITY/EQUALITY OF RESOURCE AVAILABILITY
• GOOD INFORMATION/LOW TRANSACTION COSTS
OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM• FUNGIBLE PRODUCT
• SUPPLIERS CAN’T AFFECT EACH OTHERS PRICING/OUTPUT
• MOBILITY/EQUALITY OF RESOURCE AVAILABILITY
• GOOD INFORMATION/LOW TRANSACTION COSTS
OPTIMUM CONDITIONS FOR COMPETITIVE EQUILIBRIUM• FUNGIBLE PRODUCT
• SUPPLIERS CAN’T AFFECT EACH OTHERS PRICING/OUTPUT
• MOBILITY/EQUALITY OF RESOURCE AVAILABILITY
• GOOD INFORMATION/LOW TRANSACTION COSTS
Q P TR MRI MC TC Pft 4 21 84 15 7 28 565 19 95 11 7 35 606 17 102 7 7 42 607 15 105 3 7 49 568 13 104 -1 7 56 489 11 99 -5 7 63 3610 9 90 -9 7 70 2011 7 77 -13 7 77 012 5 60 -17 7 84 -24
Q P TR MRI MC TC Pft 4 21 84 15 7 28 565 19 95 11 7 35 606 17 102 7 7 42 607 15 105 3 7 49 568 13 104 -1 7 56 489 11 99 -5 7 63 3610 9 90 -9 7 70 2011 7 77 -13 7 77 012 5 60 -17 7 84 -24
BARRIERS TO ENTRY
• LIMITED ACCESS TO KEY RESOURCES
• GOVERNMENT REGULATION
• HIGH FIXED COSTS
• BRAND LOYALTY