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Mercados de competencia

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Negocios Internacionales Mind Map on Mercados de competencia, created by Angie Rincón on 23/09/2022.
Angie Rincón
Mind Map by Angie Rincón, updated more than 1 year ago
Angie Rincón
Created by Angie Rincón over 2 years ago
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Resource summary

Mercados de competencia
  1. Perfect competition market
    1. Definition: It's an ideal model, there's a free game of supply and demand and aims to strike a balance
      1. Short term
        1. Non-modifiable conditions and situations
          1. Fixed number of companies
          2. Long term
            1. If there are benefits, it means that there will be a high supply, so prices will fall
              1. If there are losses, the structure of the company will be modified, shifting supply to the left, causing losses to cease to exist, and the equilibrium price to rise.
              2. Assumptions
                1. The number of buyers and sellers is high
                  1. Freedom to enter and exit the market, i.e. an open market
                    1. Homogeneous product
                      1. Knowledge of how the market works
                2. Functioning
                  1. Marginal revenue must be equal to marginal cost, therefore, production will have to increase.
              3. Imperfect competition market
                1. Monopoly
                  1. Definition: Market structure in which there is only one firm that dominates production
                    1. Characteristics
                      1. Demand function with negative slope
                        1. Freedom to set prices
                          1. Price-elasticity of finite demand, as they are the only supplier, they have no other option than to adapt to the price they set
                            1. If it is sold in greater quantity, the price must be reduced.
                              1. Price is greater than marginal revenue
                                1. In monopoly there is no supply function.
                                2. Functioning
                                  1. It will be necessary to produce a quantity such that its marginal revenues are equal to its marginal costs.
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