Lower than monopolistic battle, demand curve was down inclining
A down slanting demand curve can not be tangent so you can productivity LAC contour at the their minimum. For this reason versus finest battle there will often be extreme ability.
About above drawing qc is perfect competition efficiency, qp was monopolistic competition returns lower than rates battle and you may qn try monopolistic race productivity significantly less than price battle.
Based on Chamberlain, best battle can’t be regarded as ideal out having monopolistic competition. Inside the monopolistic competition due to down inclining consult bend top efficiency would-be left regarding at least LAC.
So long as there is price battle and you will totally free entry, the latest tangency part within firm’s consult bend plus the LAC contour manage lead to the greatest productivity no a lot of capability. It’s price of unit differentiation.
They measures the fresh dominance once the price of a good a lot of so you’re able to the marginal pricing. For best competition P = MC ergo Lerner’s list http://datingranking.net/cs/joingy-recenze/ try 0.
In case of dominance H would-be step one
In the eventuality of single corporation marketplace is shorter sensitive to the fresh new field cost, while in matter-of plethora of enterprises market is very responsive to the business pricing. Read More