Imperfect Competition Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly. Imperfect competition includes industries in which firms have competitors but do not face so much competition that they are price takers

The Meaning of Competition A perfectly competitive market has the following characteristics: – There are many buyers and sellers in themarket

“The best things in life are free. . .” Free goods provide a special challenge foreconomic analysis Most goods in our economy are allocatedin markets… for these goods, prices are the signalsthat guide the decisions of buyers andsellers

The Market Forces of Supply and Demand Supply and Demand are the two wordsthat economists use most often. Supply and Demand are the forces thatmake market economies work. Modern microeconomics is about supply,demand and equilibrium

Efficiency v. Equity – Efficiency means society gets the most that it can from its scarce resources. – Equity means the benefits of those resources are distributed fairly among the members of society

 Overview of Long-Lived Assets  Acquisition Cost of Tangible Assets  Depreciation Method

 Preparing the Financial Statements from the Adjusted Trial Balance  Closing the Accounts  Classification of Assets and Liabilities  Two Accounting Ratios

 Recognition of sales revenue  Measurement of sales revenue  Cash and accounts receivable  Measurement of uncollectible accounts

 Accrual-basis Accounting  Concepts of Accrual-basis Accounting  Adjusting the Accounts  Preparing the Adjusted Trial Balance

 Accounting Equation  The Account and Double-Entry Accounting  Analyzing the Transactions  Journalizing the Transactions  Posting  Preparing the Unadjusted Trial Balance