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Welcome to John Prichard's Microeconomics Home Page |
About ME. I am a student at Valencia Community College in Orlando, FL. I am majoring in Economics and hope to eventually graduate. This site is dedicated to enhancing my learning experience. Check back often, I will be updating this site regularly as I work my way toward my degree. |
Microeconomics is the study of decision making by individuals, households, firms, industries or specific levels of government |
In this class, I have discovered many things about microeconomics |
Positive Economics deal with facts. An example would be if Mary earns $50/hr and she works 10 hours, then she earned $500. Normative Economics is based on value judgements. We ought to make the rich give $100 a week to the poor is an example. |
Examples of Substitute Goods: Coke and Pepsi McDonalds and Burger King Nike and Reebok Pork and Beef Chevrolet and Ford |
Substitute goods compete with each other for buyers |
Normative goods go together. |
Examples of Normative Goods: Chips and Salsa Pizza and Beer Mattress and Box Springs |
Market Structures: Perfect Competition is a large number of small firms, easy entry and exit from the market and a common product Monopoly Structure is a single seller with a unique product and impossible entry into the market. Monopolistic Competition is many small sellers with differentiated product and easy market entry and exit. Oligopoly is few sellers with difficult market entry and either like or differentiated products |
examples of perfect competition are farmers and hotels |
examples of monopoly were Standard Oil in the 1900's and ATT in the 1980's |
Monopolistic competition examples are restaurants, lawyers, doctors and golf courses |
Oligopoly is best represented by the Auto industry |
Microeconomics also deals with Antitrust and regulation |
Major Antitrust legislation includes: The Sherman Act of 1890 - prohibit monopolization and conspiracies The Clayton Act of 1914 - makes it illegal to engage in anticompetitive business practices The Federal Trade Commission Act of 1914- estabilshed the Federal Trade Commission The Robinson-Patman Act (the "Chain Store Act") of 1936 - strengthened the Clayton Act by making price discrimination illegal The Celler-Kefauver Act of 1950 - Prohibits purchasing a competitor if the merger substantially lessens competition |
here are a few diversions for you |
Please come back and visit. If you would like to assist a poor college student in paying for his education, please e-mail me to find out how you can contribute to our future. You never know, I might just turn out to be the next Alan Greenspan. |
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