1 / 5

Introduction to Oligopoly

Module. Micro: Econ:. 28. 64. Introduction to Oligopoly. KRUGMAN'S MICROECONOMICS for AP*. Margaret Ray and David Anderson. What you will learn in this Module :. Why oligopolists have an incentive to act in ways that reduce their combined profit.

cecilia-tucker
Download Presentation

Introduction to Oligopoly

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Module Micro: Econ: 28 64 Introduction to Oligopoly • KRUGMAN'S • MICROECONOMICS for AP* Margaret Ray and David Anderson

  2. What you will learnin thisModule: • Why oligopolists have an incentive to act in ways that reduce their combined profit. • Why oligopolies can benefit from collusion.

  3. Understanding Oligopoly • “Few” producers • Remember HHI • Interdependence

  4. Collusion and Competition • Oligopoly firms can increase their profits by colluding to restrict output or raise price. • Maintaining collusive agreements is difficult because there is an incentive to cheat • Collusion is illegal

  5. Price versus Quantity Competition • Bertrand • Price competition • Competitive outcome • Cournot • Quantity competition • Economic profits

More Related