Pankaj Shah and His 4info

You might never leave your house without having your mobile phone on your hand. This small device has made us have easiness on communicating with other people. It also offers a simple way to send message to our family and friends. We can send SMS directly to our friends. We only need to type short information on things that we would like to share with them and send it directly to their mobile phone. Sending SMS also costs you less than making phone calls. You can send longer information at cheaper price. It will be better if you can use SMS to monitor your business. Read the rest of this entry »

The Firm’s Supply Decision-Competition

The logic behind the supply decision of an individual firm in a competitive market is straight forward. The first two characteristics of a competitive market-many smalls firms producing a standardized product-mean that each firm is a price taker. In a competitive market, a firm can sell as much or as little as it wishes without having any appreciable effect on the market price.

To earn as large a profit as possible, a firm in a competitive market will chose the output that makes marginal cost equal to the market price. If the firm Read the rest of this entry »

Short-Run and Long-Run Equilibrium-Competition

Short-Run Competitive Equilibrium

The market demand curve shows the quantity that consumers will purchase at different prices. Short-run market equilibrium occurs at the intersection of the market demand and supply curves.the initial short-run equilibrium price is P₁ and the short-run equilibrium industry output is Q_1. , the typical firm will produce an output q₁ in short-run equilibrium. Read the rest of this entry »

Monopoly

In this section, we describe the monopolist’s output decisions. This discussion allows us to develop a measure of the degree of market power and to discuss alternative conception of the welfare loss imposed on society by monopoly. Finally, we discuss economist’ attempts to measure the economic effects of market power. Read the rest of this entry »