25

Monopolistic
Competition
Characteristics
Price and Output in C HAPTE R
Monopolistic
Competition
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Monopolistic
Key Terms

Previous Next
Competition
Slide Slide
End
Show
and Oligopoly
25 - 1
Copyright McGraw-Hill/Irwin, 2005
 FOUR MARKET MODELS
Monopolistic
Competition
Characteristics
Monopolistic Competition:
Price and Output in
Monopolistic
Competition
Relatively Large
Monopolistic
Competition and
Efficiency
Oligopoly
Number of Sellers
Oligopolies and Mergers
Three Oligopoly Models
Differentiated Products
Easy Entry and Exit
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Pure Monopolistic Pure
Key Terms
Competition Competition Oligopoly Monopoly

Previous Next
Slide Slide
End Market Structure Continuum
Show
25 - 2
Copyright McGraw-Hill/Irwin, 2005
 CHARACTERISTICS
Monopolistic
Competition
Characteristics
Price and Output in
Relatively Large
Monopolistic
Competition
Monopolistic
Competition and
Efficiency
Number of Sellers
Small Market
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Shares
Key Terms

No Collusion
Previous Next
Slide
End
Show
Slide
Independent Action
25 - 3
Copyright McGraw-Hill/Irwin, 2005
 CHARACTERISTICS
Monopolistic
Competition
Characteristics
Differentiated Products
Price and Output in
Monopolistic Product Attributes
Service
Competition
Monopolistic
Competition and
Efficiency
Oligopoly Location
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Brand Names and
Cartels and Collusion Packaging
Some Control Over
Price Leadership
Oligopoly and Efficiency
Key Terms

Price
Previous
Slide
Next
Slide Easy Entry and Exit
End
Show
25 - 4
Advertising
Copyright McGraw-Hill/Irwin, 2005
 PRICE AND OUTPUT IN
Monopolistic
Competition
MONOPOLISTIC COMPETITION
Characteristics
Price and Output in
Expect New Competitors MC
Monopolistic
Competition
ATC
Monopolistic
Competition and
Efficiency
Price and Costs

Oligopoly
P1
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
A1
Cartels and Collusion
Price Leadership Short-Run
Oligopoly and Efficiency
Economic
Key Terms
Profits D
Previous
Slide
Next
Slide
MR
End
Show Q1
25 - 5 Quantity
Copyright McGraw-Hill/Irwin, 2005
 PRICE AND OUTPUT IN
Monopolistic
Competition
MONOPOLISTIC COMPETITION
Characteristics
Price and Output in
Expect New Competitors MC
Monopolistic
Competition
ATC
Monopolistic
Competition and
Efficiency New competition drives down the
Price and Costs

level leading to economic

Oligopoly
P
Oligopolies and Mergers price
1

Three Oligopoly Models

Kinked-Demand Theory
A1 losses in the short run.
Cartels and Collusion
Price Leadership Short-Run
Oligopoly and Efficiency
Economic
Key Terms
Profits D
Previous
Slide
Next
Slide
MR
End
Show Q1
25 - 6 Quantity
Copyright McGraw-Hill/Irwin, 2005
 PRICE AND OUTPUT IN
Monopolistic
Competition
MONOPOLISTIC COMPETITION
Characteristics
MC
Price and Output in
Monopolistic
Competition
ATC
Monopolistic
Competition and
Efficiency A2
Price and Costs

Oligopoly P2
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory Short-Run
Cartels and Collusion
Price Leadership
Economic
Oligopoly and Efficiency Losses
Key Terms
D
Previous
Slide
Next
Slide
MR
End
Show Q2
25 - 7 Quantity
Copyright McGraw-Hill/Irwin, 2005
 PRICE AND OUTPUT IN
Monopolistic
Competition
MONOPOLISTIC COMPETITION
Characteristics
MC
Price and Output in
Monopolistic
Competition
ATC
Monopolistic
Competition and
A2
Efficiency
With economic losses, firms will
Price and Costs

Oligopoly P2
Oligopolies and Mergers
Three Oligopoly Models
exit the market stability occurs
Kinked-Demand Theory
whenShort-Run
economic profits are zero.
Cartels and Collusion
Price Leadership
Economic
Oligopoly and Efficiency Losses
Key Terms
D
Previous
Slide
Next
Slide
MR
End
Show Q2
25 - 8 Quantity
Copyright McGraw-Hill/Irwin, 2005
 PRICE AND OUTPUT IN
Monopolistic
Competition
MONOPOLISTIC COMPETITION
Characteristics Long-Run Equilibrium MC
Price and Output in
Monopolistic Normal
Competition
Monopolistic Profit ATC
Competition and
Efficiency Only
Price and Costs

Oligopoly P3
Oligopolies and Mergers = A3
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
D
Previous
Slide
Next
Slide
MR
End
Show Q3
25 - 9 Quantity
Copyright McGraw-Hill/Irwin, 2005
 MONOPOLISTIC COMPETITION
Monopolistic
Competition
AND EFFICIENCY
Not Productively Efficient
Characteristics
Price and Output in
Monopolistic
Competition

Minimum ATC
Monopolistic
Competition and
Efficiency
Oligopoly

Not Allocatively Efficient

Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
Price MC
Previous
Slide
Next
Slide
Excess Capacity
End
Show
Graphically
25 - 10
Copyright McGraw-Hill/Irwin, 2005
 MONOPOLISTIC COMPETITION
Monopolistic
Competition
AND EFFICIENCY
Characteristics Long-Run Equilibrium MC
Price and Output in
Monopolistic
Price is Not
Competition
Monopolistic
= Minimum ATC
Competition and
Efficiency ATC
Price and Costs

Oligopoly P3
Oligopolies and Mergers = A3
Three Oligopoly Models
Kinked-Demand Theory Price MC
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
D
Previous
Slide
Next
Slide
MR
End
Show Q3
25 - 11 Quantity
Copyright McGraw-Hill/Irwin, 2005
 MONOPOLISTIC COMPETITION
Monopolistic
Competition
AND EFFICIENCY
Characteristics
Price and Output in
Monopolistic Product Variety
Benefits of Product
Competition
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Variety
Kinked-Demand Theory
Cartels and Collusion
Nonprice Competition
Advertising Role
Price Leadership
Oligopoly and Efficiency
Key Terms

Previous
Slide
Next
Slide
Trial & Error Search for
End
Show Maximum Profits
25 - 12
Copyright McGraw-Hill/Irwin, 2005
 FOUR MARKET MODELS
Monopolistic
Competition
Oligopoly:
A Few Large Producers
Characteristics
Price and Output in
Monopolistic
Competition
Monopolistic
Competition and
Homogeneous or
Efficiency
Oligopoly
Differentiated Products
Oligopolies and Mergers
Three Oligopoly Models
Control Over Price, But
Kinked-Demand Theory
Cartels and Collusion
Mutual Interdependence
Price Leadership
Oligopoly and Efficiency
Strategic Behavior
Key Terms
Entry
Pure
Barriers Pure
Monopolistic
Previous Next Competition Competition Oligopoly Monopoly
Slide Slide
End
Show
25 - 13
Market Structure Continuum
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLIES AND MERGERS
Monopolistic
Competition
Characteristics
Mergers
Price and Output in
Monopolistic
Competition
Measures of Industry
Monopolistic
Competition and
Efficiency Concentration
Concentration Ratio
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion Localized Markets
Interindustry Competition
Price Leadership
Oligopoly and Efficiency
Key Terms

Previous Next
World Trade
Slide
End
Slide
Import Competition
Show
25 - 14
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLIES AND MERGERS
Monopolistic
Competition
Characteristics
Herfindahl Index
Price and Output in
Monopolistic
Sum of the squared percentage market
Competition
Monopolistic
shares for all firms in the industry
Competition and
Efficiency Places greater weight upon the larger
Oligopoly
Oligopolies and Mergers
firms
(%S1)2 + (%S2)2 + (%S3)2 + + (%Sn)2
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
A greater Herfindahl Index
Key Terms
indicates a greater concentration
Previous Next of market power in the industry.
Slide Slide
End (Pure competition is near zero.)
Show
25 - 15
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLIES AND MERGERS
Monopolistic
Competition
Characteristics Mutual Interdependence
Price and Output in
Monopolistic
Competition
Monopolistic
Game-Theory Model
Competition and
Efficiency
Oligopoly
Collusive Tendencies
Collusion
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Incentive to Cheat
Key Terms
Introduction to Game
Previous
Slide
End
Next
Slide Theory
Show
25 - 16
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15

Oligopolies and Mergers
Three Oligopoly Models High
Kinked-Demand Theory
$12 $6
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
C $6 D $8
Previous Next Low
Slide Slide
$15 $8
End
Show
25 - 17
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15 Greatest

Oligopolies and Mergers Combined
Three Oligopoly Models High Profit
Kinked-Demand Theory
$12 $6
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
C $6 D $8
Previous Next Low
Slide Slide
$15 $8
End
Show
25 - 18
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15 Independent

Oligopolies and Mergers Actions
Three Oligopoly Models High Stimulate
Kinked-Demand Theory
$12 $6 Response
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
C $6 D $8
Previous Next Low
Slide Slide
$15 $8
End
Show
25 - 19
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15 Independent

Oligopolies and Mergers Actions
Three Oligopoly Models High Stimulate
Kinked-Demand Theory
$12 $6 Response
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Gravitating
Key Terms
C $6 D $8 to the
Low Worst Case
Previous Next
Slide Slide
$15 $8
End
Show
25 - 20
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Collusion
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15 Invites a

Oligopolies and Mergers
Three Oligopoly Models High Different
Kinked-Demand Theory
$12 $6 Solution.
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
C $6 D $8
Previous Next Low
Slide Slide
$15 $8
End
Show
25 - 21
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Collusion
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15 Invites a

Oligopolies and Mergers
Three Oligopoly Models High Different
Kinked-Demand Theory
$12 $6 Solution.
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
C $6 D $8
Previous Next Low
Slide Slide
$15 $8
End
Show
25 - 22
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY BEHAVIOR
Monopolistic
Competition
Characteristics
A Game-Theory Overview
Price and Output in RareAirs Price Strategy
Monopolistic
Competition
High Low
Monopolistic
Competition and
Collusion
Efficiency
A B
Uptowns Price Strategy

Oligopoly $12 $15 Invites a

Oligopolies and Mergers
Three Oligopoly Models High Different
Kinked-Demand Theory
$12 $6 Solution.
Cartels and Collusion
Price Leadership But, the
Oligopoly and Efficiency
incentive
Key Terms
C $6 D $8 to cheat
Previous Next Low is very
Slide Slide
$15 $8 real.
End
Show
25 - 23
Copyright McGraw-Hill/Irwin, 2005
 THREE OLIGOPOLY MODELS
Monopolistic
Competition
Characteristics
No Standard Model due to...
Price and Output in
Monopolistic
Competition
Diversity of Oligopolies
Monopolistic
Competition and
Efficiency
Complications of
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Interdependence
Kinked-Demand Theory
Cartels and Collusion
Alternative Models:
1 Kinked Demand Curve
Price Leadership
Oligopoly and Efficiency
Key Terms

Previous Next
2 Cartels and Collusion
3 Price Leadership
Slide Slide
End
Show
25 - 24
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics
Price and Output in The firms demand and
Monopolistic
Competition marginal revenue curves
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Price

Three Oligopoly Models

Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms

Previous Next
Slide Slide D1
End
Show
25 - 25
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics
Price and Output in The rivals demand and
Monopolistic
Competition marginal revenue curves
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Price

Three Oligopoly Models

Kinked-Demand Theory
Cartels and Collusion
Price Leadership D2
Oligopoly and Efficiency
Key Terms

Previous Next MR2

Slide Slide D1
End
Show
25 - 26
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics Rivals tend to
Price and Output in
Monopolistic
Competition
follow a price cut
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Price

Three Oligopoly Models

Kinked-Demand Theory
Cartels and Collusion
Price Leadership D2
Oligopoly and Efficiency
Key Terms

Previous Next MR2

Slide Slide D1
End
Show
25 - 27
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics Rivals tend to
Price and Output in
Monopolistic
Competition
follow a price cut
Monopolistic
Competition and or ignore a
Efficiency
Oligopoly price increase
Oligopolies and Mergers
Price

Three Oligopoly Models

Kinked-Demand Theory
Cartels and Collusion
Price Leadership D2
Oligopoly and Efficiency
Key Terms

Previous Next MR2

Slide Slide D1
End
Show
25 - 28
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics
Price and Output in Effectively creating
Monopolistic
Competition a kinked demand curve
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Price

Three Oligopoly Models

Kinked-Demand Theory
Cartels and Collusion
Price Leadership D2
Oligopoly and Efficiency
Key Terms

Previous Next MR2

Slide Slide D1
End
Show
25 - 29
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics
Price and Output in Effectively creating
Monopolistic
Competition a kinked demand curve
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Price

Three Oligopoly Models

Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms

Previous Next
Slide Slide D
End
Show
25 - 30
Quantity
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics
Price and Output in Effectively creating
Monopolistic
Competition a kinked demand curve
Monopolistic
Competition and
Efficiency
Oligopoly
MC1
Oligopolies and Mergers
Price

Three Oligopoly Models MR2

Kinked-Demand Theory
Cartels and Collusion
Price Leadership
MC2
Oligopoly and Efficiency
Key Terms

Previous Next
Slide Slide D
End
Show
25 - 31
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics Profit maximization
Price and Output in
Monopolistic
Competition
MR = MC occurs
Monopolistic
Competition and at the kink.
Efficiency
Oligopoly
MC1
Oligopolies and Mergers
Price

Three Oligopoly Models MR2

Kinked-Demand Theory
Cartels and Collusion
Price Leadership
MC2
Oligopoly and Efficiency
Key Terms

Previous Next
Slide Slide D
End
Show
25 - 32
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 KINKED DEMAND THEORY:
Monopolistic
Competition
NONCOLLUSIVE OLIGOPOLY
Characteristics
Price and Output in
Monopolistic
This behavior can set
Competition
Monopolistic
off a price war.
Competition and
Efficiency
Oligopoly
MC1
Oligopolies and Mergers
Price

Three Oligopoly Models MR2

Kinked-Demand Theory
Cartels and Collusion
Price Leadership
MC2
Oligopoly and Efficiency
Key Terms

Previous Next
Slide Slide D
End
Show
25 - 33
Quantity MR1
Copyright McGraw-Hill/Irwin, 2005
 CARTELS AND OTHER COLLUSION
Monopolistic
Competition
Characteristics
Oligopoly is conducive to
Price and Output in
Monopolistic
Competition
collusion.
Monopolistic
Competition and
Efficiency
Oligopoly
If a few firms face identical
Oligopolies and Mergers
Three Oligopoly Models or highly similar demand
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
and costs...
Oligopoly and Efficiency
Key Terms
they will tend to seek joint
Previous
Slide
Next
Slide
profit maximization.
End
Show
Graphically
25 - 34
Copyright McGraw-Hill/Irwin, 2005
 CARTELS AND OTHER COLLUSION
Monopolistic
Competition
Colluding Oligopolists Will
Characteristics
Price and Output in
Split the Monopoly Profits.
Monopolistic
Competition Economic
Monopolistic
Competition and
Efficiency
Price and costs
Profit MC
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
P0
Kinked-Demand Theory
A0 ATC
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
D
Key Terms

Previous Next MR = MC
Slide Slide MR
End
Show Q0
25 - 35
Copyright McGraw-Hill/Irwin, 2005
 CARTELS AND OTHER COLLUSION
Monopolistic
Competition
Characteristics
Price and Output in
Overt Collusion
Cartels Defined
Monopolistic
Competition
Monopolistic
Competition and

The OPEC Cartel

Efficiency
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Covert Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms
Recent Examples
Previous Next
U.S. Illegality
Tacit Understandings
Slide Slide
End
Show
25 - 36
Copyright McGraw-Hill/Irwin, 2005
 CARTELS AND OTHER COLLUSION
Monopolistic
Competition
Characteristics
Obstacles to Collusion
Price and Output in
Monopolistic
Competition
Demand and Cost
Monopolistic
Competition and
Efficiency
Oligopoly
Differences
Oligopolies and Mergers
Three Oligopoly Models
Number of Firms
Cheating
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms Recession
Previous
Slide
Next
Slide
Potential Entry
End
Show
25 - 37
Antitrust Law
Copyright McGraw-Hill/Irwin, 2005
 PRICE LEADERSHIP MODEL
Monopolistic
Competition
Characteristics
Price and Output in
Leadership Tactics
Infrequent Price
Monopolistic
Competition
Monopolistic
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Changes
Three Oligopoly Models
Kinked-Demand Theory Communications
Limit Pricing
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
Key Terms

Previous Next
Breakdowns in Price
Slide
End
Show
Slide
Leadership-Price Wars
25 - 38
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY AND ADVERTISING
Less Easily Duplicated
Monopolistic
Competition
Characteristics

Adequate Resources
Price and Output in
Monopolistic
Competition
Monopolistic

Positive Effects of
Competition and
Efficiency
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Advertising
Price Leadership
Oligopoly and Efficiency
Key Terms
Potential Negative
Previous Next
Effects of Advertising
Brand Development
Slide Slide
End
Show
25 - 39
Copyright McGraw-Hill/Irwin, 2005
 OLIGOPOLY AND EFFICIENCY
Monopolistic
Competition
Characteristics
Price and Output in
Productive Efficiency
Monopolistic
Competition
Monopolistic
Competition and
P = Minimum ATC
Efficiency
Oligopoly
Oligopoly: No Productive Efficiency
Oligopolies and Mergers
Three Oligopoly Models
Kinked-Demand Theory
Cartels and Collusion
Allocative Efficiency
Price Leadership
Oligopoly and Efficiency
Key Terms
P = MC
Oligopoly: No Allocative Efficiency
Previous Next
Slide Slide
End
Show
Qualifications
25 - 40
Copyright McGraw-Hill/Irwin, 2005
 monopolistic competition interindustry competition
product differentiation import competition
Herfindahl index
nonprice competition
game-theory model
excess capacity
collusion
oligopoly kinked-demand curve
homogeneous oligopoly price war
differentiated oligopoly cartel
strategic behavior tacit understandings
mutual interdependence price leadership
concentration ratio
Copyright McGraw-Hill/Irwin, Inc. 2005 BACK END
Monopolistic
Competition Next...
Characteristics
Price and Output in
Monopolistic
Competition
Monopolistic
Competition and
Technology,
Efficiency
Oligopoly
Oligopolies and Mergers
Three Oligopoly Models
R&D,
Kinked-Demand Theory
Cartels and Collusion
Price Leadership
Oligopoly and Efficiency
and
Key Terms

Previous
Slide
Next
Slide
Efficiency
End
Show
Chapter 26
25 - 42
Copyright McGraw-Hill/Irwin, 2005