The Equilibrium for an oligopoly The oligopoly price is less than the monopoly price but greater than the competitive price(which equals marginal cost). H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. The Equilibrium for an Oligopoly The oligopoly price is less than the monopoly price but greater than the competitive price (which equals marginal cost)
Summary of Equilibrium for an Oligopoly o Possible outcome if oligopoly firms pursue their own self-interests: Joint output is greater than the monopoly quantity but less than the competitive industry quantity o Market prices are lower than monopol price but greater than competitive price. Total profits are less than the monopoly profit H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Summary of Equilibrium for an Oligopoly u Possible outcome if oligopoly firms pursue their own self-interests: u Joint output is greater than the monopoly quantity but less than the competitive industry quantity. u Market prices are lower than monopoly price but greater than competitive price. u Total profits are less than the monopoly profit