Chapter 12 Monopolistic Competition and oligopoly
Chapter 12 Monopolistic Competition and Oligopoly
Topics to be Discussed a MonopolistIc Competition Oligopoly Price Competition a Competition Versus Collusion: The Prisoners dilemma Chapter 12 Slide 2
Chapter 12 Slide 2 Topics to be Discussed n Monopolistic Competition n Oligopoly n Price Competition n Competition Versus Collusion: The Prisoners’ Dilemma
Topics to be Discussed a Implications of the Prisoners Dilemma for Oligopolistic Pricing ■ Cartels Chapter 12 Slide 3
Chapter 12 Slide 3 Topics to be Discussed n Implications of the Prisoners’ Dilemma for Oligopolistic Pricing n Cartels
Monopolistic Competition ■ Characteristics 1)Many firms 2) Free entry and exit 3)Differentiated product Chapter 12 Slide 4
Chapter 12 Slide 4 Monopolistic Competition n Characteristics 1) Many firms 2) Free entry and exit 3) Differentiated product
Monopolistic Competition a The amount of monopoly po depends on the degree ofwer differentiation a EXamples of this very common market structure include ● Toothpaste o Soap ● Cold remedies Chapter 12 Slide 5
Chapter 12 Slide 5 Monopolistic Competition n The amount of monopoly power depends on the degree of differentiation. n Examples of this very common market structure include: l Toothpaste l Soap l Cold remedies