Lecture 15 Industrial Organization

1
Lecture 15 - Industrial Organization

• Wissinks Words

2
remarks

• Near the end of the road on the perfectly
  competitive model.
• Bringing the short run and long run analysis
  together.

3

• Make sure you understand the following
• short run shut down vs. long run break even
• minimum efficient scale of operation
• external economies and diseconomies vs. internal
  economies and diseconomies
• how the firm and market go from one long-run
  equilibrium to another Comparative Statics,
  again

4

• Market long run supply relationship vs. market
  short run supply relationship
• long run supply is an odd duck
• Use the firm cum market model to analyze price
  floors, price ceilings, quantity quotas and
  commodity taxes.

5
steps to draw the picture?

• Doesnt matter how you draw it, as long as you
  draw it correctly in the end.
• Draw-a-person test.