all right I also have this right some people confuse monopolistic or not when you look at this one police competition now it becomes more police and so the different day but small monopolist is a monopoly and a monopolistic competence is this way which is different now you might want to say okay but two words there are so many if I say men and I say men I seem to be saying the same thing but the other one is indeed other one as an a the one with an A is referring to one man the one within is referring to you see so just a small change you change an a to make it and eat it mean it means all the difference same applies here just this I see monopolistic it makes all the difference it means there is an industry with many buyers and sellers that are selling heterogeneous products the other one is one firm selling a unique product you see that's different so nobody on a ballistic two different things but in monopolistic we have many buyers and sellers and what they're selling is is heterogeneous products now this will normally refer to as a high grade structure now what is it hydrate if we take for instance put people and I don't know much about dogs but let me try we take a pit bull and a German Shepherd the puppy that they produce is a hybrid see it's not a pit bull it's not a German Shepherd it's a hybrid then you could give it a name and call it I don't know what you see that so monopolistic is also hybrid and it's my the father is the perfect and the mother is the monopoly so you know the baby is monopolistic right so the reason we say it is a hybrid structures because there are certain characteristics from perfect exist in monopolistic then we have a certain characteristic from monopoly that exist in in in monopolistic so this one is the Sun to come on open the end perfect something like that alright so it's a high construction it but what are the characteristics again I'm not giving you characteristics for my edge this is the examination guide right in this document we were told by the Department of Education Economics Department to you know compare markets using this criteria so I'm going to look at number of businesses later product entrance control over price information examples demand curve economic profit decision-making collusion productive and allocative efficiency now let's have a look product oh no we haven't the product is differentiated or heterogeneous look at that Romans me time Japanese pizza you can tell the difference you know the difference McDonald's Spears you know the difference KFC chicken licken you know the difference right hybrid structure I explained this one is the Sun to control the price this industry it exists to some extent then collusion is not possible simply because there are many firms in this particular industry and then non-price competition is exist if we have a scene McDonald's advertise is all the time you see them but now you know if you go to perfect competition you see that father a want really advertises makes you see one TV saying behind my makes the best maintenance of Africa will just look at you crazy when you advertise your major advertising for the rest of us you know because Europeans is just like ours remember the product is homogeneous but McDonald's can advertise their big bank cause yet for sure it's the only one is the only one that tastes that way because of the way they make it and the Big Mac is different from their back fist you see differentiated products so they are solely descending burgers and they have a variety of burgers that taste different what you kept see they also have different bills and they taste different this one they put that the other one and the road tell us how they bake it so information becomes incomplete all the time and then market entry is very easy come up with our own recipes chicken no one is going to restrict you from doing that as long as you can have a unique way of making wine effects is that you making information is incomplete yes we don't explain to you how it is because let me find them number affects many nature of product the product is happy genius energy is free control over price little information it's incomplete examples fast-food outlets demand curve downward sloping elastic economic profits no cannot be achieved in the lower but normal decision-making it can affect but not as much as it does in oligopoly collusion is impossible they are way too many productive efficiency to some extent can be achieved in a way and then allocative efficiency also to some extent so I think I've answered what was busy position but perfect a monopoly a monopolistic business can achieve economic profit that economy was all right this is our realistic business so this is our exist the practice one and the quantity you write in full there is our demand curve elasticity okay now where is our MC this is our first curve but where does it meet our empire they meet at this point so this becomes our fantasy hundred what is our price same applies as monopoly they you see let's say 15 right now is this friendly a lot we don't know we'll only know when we see our in secret so if I drop my AC curve right thing look at that you see that the price the cost is more so this whole part here represents economic profit do you see that this is this is identical to this one visits to this one it's more less the same this one raise it that's what identical to this one economic profit the only difference look that's to this one the only difference is look at the demography do you see that that demand curve is elastic and this one is this one is elastic that one is inelastic so is the perfect I think economy profit how do I know then I will have to prove it so to prove it is the popular a R minus HD so what is our AR our AR is 15 right - what is our AC our AC is 10 right so what's the difference the difference is finite so do you see that this my friend is what positive so it in positive means the firm is making a so an economy economic profits correct the next pocket so there we have it our DS equals a profit maximizing point where these two curves meet point E and that's our price this is the cost in C now in the long run we have a different scenario in the long run we have we can have this kind of a scenario okay this will be our demand curve that has shifted so this our team is equal to a because there are many friends in this industry so at the end of the day we will see we can see a scenario like this where the demand curve shifts like this so when this is kind of a scenario happens this was our demand curve at first and this is our friend price so our high score today and now drops to something like this now if we were making an economic profit let's say I'm doing it faster because I'll go and explain it they write this is our MC so we before the shift so this can be one like that before the shift and this shift is caused by new friends and having the industry so our ultimate curve will shift to the black of the method so this is what I'm explaining and have explained it here so you can go through and you can treat so like I said this then becomes our AC and this is our MC in the long-run effects all right moving on to other concepts okay so anyway this is this time I thought I was going to do economic loss in this lesson so it means it's in the next lesson so our comedies why would you not participate in the market and the conditions of felicity this question is trying to say what are the disadvantages off on a holistic alright so thank you so much I'll see in the next lesson which is lessons 676