pricing competition and market structurebusi 7130 7136 porter s five forces model structure internal rivalry decisions are closely related but how to define the degree which firm gets choose price is determined in large part by there two extreme cases perfect monopoly conditions necessary numbers of buyers sellers homogeneous product free entry exit information cont demand curve for any given horizontal set at pe can sell as much or little desired nothing if they raise p single seller no close substitutes significant barriers few examples pure most firms have a differentiated do not output quantity tc includes opportunity cost capital invested what will be our profit loss from decision should we produce now sr stay industry lr maximization achieved setting so that mc
