Oligopoly y Chapter 16
Oligopoly Chapter 16
Imperfect Competition Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly. e Imperfect competition includes industries in which firms have competitors but do not face so much competition that they are rice takers
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
Types of Imperfectly Competitive Markets Oligopoly Only a few sellers, each offering a similar or identical product to the others Monopolistic Competition Many firms selling products that are similar but not identical
Types of Imperfectly Competitive Markets • Oligopoly – Only a few sellers, each offering a similar or identical product to the others. • Monopolistic Competition – Many firms selling products that are similar but not identical
The Four Types of Market Structure Number of firms? Many fi Irms One firm Few Type of Products? firms Differentiated Identical pI roalucts products Monopol Oligopoly Monopolistic Perfect Competition Competition ● Tap water Tennis balls Novels e Wheat e Cable Tv Crude oil ● Movies e Milk
The Four Types of Market Structure Monopoly Oligopoly Monopolistic Competition Perfect Competition • Tap water • Cable TV • Tennis balls • Crude oil • Novels • Movies • Wheat • Milk Number of Firms? Type of Products? Many firms One firm Few firms Differentiated products Identical products
Markets With Only a上 ew sellers Because of the few sellers, the key feature of oligopoly is the tension between cooperation and self-interest
Markets With Only a Few Sellers • Because of the few sellers, the key feature of oligopoly is the tension between cooperation and self-interest