Page 23 - FINAL CFA I SLIDES JUNE 2019 DAY 5
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Session Unit 4:
15. The Firm & Market Structures
LOS 15.b: Explain relationships between price, marginal revenue, marginal cost, economic profit, and the
elasticity of demand under each market structure,
LOS 15.d: Describe and determine the optimal price and output for firms under each market structure.
LOS 15.e: Explain factors affecting long-run equilibrium under each market structure.
p.31
Hard in practice to
Increase p and no one matches, you loose!
determine p!
Works in case of collusion:
re cartels?
Gap
Decrease p and every matches, very little gain!
