Chapter 11 Oligopoly
1 Chapter 11 Oligopoly
Define market structures ■ Number of sellers Product differentiation ■ Barrier to entry
2 Define market structures ◼ Number of sellers ◼ Product differentiation ◼ Barrier to entry
Types of Market Structure Are products differentiated? No Yes One Mo dongpo Not applicable How many producers e Oligopoly are there? Perfect Monopolistic Man competition competition 3
3 Types of Market Structure
Oligopoly Asmall number of firms mutually dependent on one another. and each has a substantial market share
4 Oligopoly: ◼A small number of firms mutually dependent on one another, and each has a substantial market share
Characteristics of oligopoly mutual dependence or interdependence each firm has a substantial market share, thus is big enough to affect market price a barriers to entry
5 Characteristics of Oligopoly ◼ mutual dependence (or interdependence) ◼ each firm has a substantial market share, thus is big enough to affect market price ◼ barriers to entry