Firms and Market Structure - Module 1 – Economics – CFA® Level I 2025 скачать в хорошем качестве

Firms and Market Structure - Module 1 – Economics – CFA® Level I 2025

Download PDF Now: https://www.finquiz.com/cfa/level-1/s... 2025 Prep Packages for the CFA® Program exam offered by FinQuiz Pro (notes, summaries, question bank, mock exams, and formula sheet): Level I: https://www.finquiz.com/cfa/level-1/ Level II: https://www.finquiz.com/cfa/level-2/ Level III: https://www.finquiz.com/cfa/level-3/ 0:00 Introduction to CFA Level 1 Market Structures Why market structures matter for CFA Level 1 Overview of demand, supply, and competition 0:07 Demand & Price Elasticity Explained How price changes affect quantity demanded Elastic vs. inelastic demand Real-world examples - coffee sale 1:00 Cross-Price & Income Elasticity Substitutes and complements - coffee vs. tea, printers vs. ink How changes in income influence demand 2:19 Supply Side Concepts: Labor, Costs & Revenues Total, average, and marginal product of labor Total cost, variable cost, marginal cost Revenue and marginal revenue basics 3:26 Overview of Four Main Market Structures Perfect competition, monopolistic competition, oligopoly, and monopoly Key differentiators - number of sellers, product differentiation, barriers to entry 3:58 Perfect Competition Basics Many sellers, identical products, low barriers to entry Price taker model and horizontal demand curve Example: Agricultural markets - wheat, corn 4:30 Monopolistic Competition Many sellers with differentiated products Some pricing power due to branding/advertising Restaurant and clothing brand examples 5:03 Oligopoly Fundamentals Few dominant firms, interdependent decisions High barriers to entry, potential for collusion Airline and tech industry case studies 5:28 Monopoly Explained Single seller with unique product High barriers to entry, significant pricing power Utility companies as classic examples 7:00 Profit Maximization in Different Market Structures Perfect competition: P = MC Monopoly & imperfect competition: MR = MC Role of the demand curve in setting prices 9:08 Break-Even & Shutdown Points When total revenue equals total cost - zero economic profit Shutdown rule - price vs. average variable cost Short-run vs. long-run decisions 11:07 Economies & Diseconomies of Scale Lower average cost with increased production vs. rising costs due to complexity Finding the optimal size for efficiency Real-world expansion examples 16:00 Short Run vs. Long Run Adjustments Fixed inputs - short run vs. all variable inputs - long run How firms adapt production capacity over time 17:02 Perfect Competition: Detailed Insights Many buyers/sellers, homogeneous products, free entry and exit Long-run equilibrium - zero economic profit Farmer example - wheat market 19:20 Monopoly: Detailed Insights Single seller, unique product, barriers like patents/regulations Profit maximization where MR = MC Government regulation concerns 21:00 Monopolistic Competition: More In-Depth Product differentiation, advertising, brand loyalty Short-run profits vs. long-run zero economic profit Excess capacity and inefficiency 24:05 Oligopoly: Game Theory & Strategic Behavior Interdependent firms - airlines, telecom Cournot & Stackelberg models Kinked demand curve and price rigidity 27:08 Game Theory & Nash Equilibrium How firms choose optimal strategies given competitors’ actions Why price wars or tacit collusion may occur Stability in strategic choices 30:26 Measuring Market Power Elasticity analysis - demand responsiveness Cross-sectional regression - snapshot of different firms Limitations of regression and data availability 33:04 Concentration Ratios & the Herfindahl-Hirschman Index - HHI How to quantify market concentration High HHI = few dominant players - e.g., wireless telecom Policy and regulatory implications 35:03 Conclusion & CFA Exam Tips Recap of key takeaways for Market Structures Importance of practice questions in the CFA curriculum Final motivation to keep studying