Characteristics of Pure CompMkt. S, D. Profits and entryLoss and exit. LR. costs covered, no NR>0,
Characteristics of Monopoly (X,P) Standard diagram, Totals diagramEntry blocked. NR>0. Comp. and Reg. P. discrimination
Characteristics of Oligopoly. Few. Interdependence and uncertainty.Comp., price wars, stability, cartels.
Characteristics of monopolistic comp. Numbers = no interd. Entry/costs vs. different. Profits vs. Licensing.
America, home of big 3. Why import cars? What does Ricardo say? What does Leontief say? Big 3 oligop. vs. world oligop. IIT.
IIT = Intra-industry TradeIIT + Inter-industry trade = 1, orIIT = 1 - Inter-industry trade.IIT = 1 – share of XM not matched by offsetting MX.All trade is IIT if we export as many cars as we import and import as many designer jeans as we export.
In Modern Theory, traded gs and ss=global markets. Why are wheat and cars global?Low transp costs, econs of scale, Internal/external. History (qwerty) matters.
What kinds of markets? Monop? Pure comp? Oligop? M.Comp? (Prod diff and tastes)