Supply and Demand

Perfect competition

Monopolistic competition

Monopoly

Oligopoly

Decision. The benefits and salary forsaken by rejecting one job offer over another.

Salary difference between two jobs.

Experience and salary gained from selected job.

Wages lost during summer due.

Lower prices for consumers and increased quantity produced.

Decreased supply of corn and higher prices for consumers.

No change in quantity produced or consumer prices.

Higher prices for consumers and decreased quantity produced.

There is no change in allocative efficiency as long as other firms can enter the market freely.

Allocative efficiency is reduced because the firm will produce where $P > MC$ instead of $P = MC$.

Allocative efficiency improves because the firm has more resources for research and development.

Allocative efficiency is increased due to economies of scale allowing for lower average costs.

Firms typically set prices slightly above marginal cost, reflecting their unique attributes.

Prices tend toward uniformity as consumers perceive little difference across offerings.

Profits are maximized at the point where average total cost equals marginal revenue.

Individual companies cannot influence the overall level since numerous substitutes exist.

They evaluate whether producing one more unit adds enough value to cover its marginal cost.

Implement mass marketing strategies to increase demand across all products evenly.

Analyze historical sales data to set fixed production levels regardless of cost changes.

They consider how changing consumer preferences impact long-term profits exclusively.

Price decreases and quantity decreases.

Price increases and quantity increases.

Price increases but quantity remains constant.

Price remains constant but quantity increases.

The wages paid to workers who make toys.

The profit that could have been made from producing electronic gadgets.

The revenue gained from selling toys.

The raw materials used in producing toys.

Current demand increases as consumers anticipate higher costs and seek out purchases before prices rise further.

Current demand alternates between rising and falling unpredictably as different segments of consumers react differently based upon individual predictions regarding timing and magnitude of potential future rises in product pricing..

Current demand decreases because consumers decide to save money anticipating that they will have to spend more later on those products when prices increase.

There is no change in current demand since expectations of future events have no impact on present economic behaviors and decisions according to classical economic theory principles applied strictly here..

Producers suffer as they cannot compete on lower prices, limiting entry to new firms and reducing overall industry output that can harm long-term profitability.

Consumers' surplus unexpectedly rises because they value the added quality assurance that comes with government-regulated floor pricing.

Producers may experience an initial increase in producer surplus due to higher prices, while consumers face a loss of consumer surplus from paying more.

Both producers and consumers benefit from stabilized prices that prevent predatory pricing or sudden market crashes.