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Identical cost functions - PowerPoint PPT Presentation

ECON 1001

ECON 1001. Tutorial 8. Q1) Smith is a corn farmer earning economic profits and Wesson is a wheat farmer receiving a normal profit. Wesson has an incentive to become a corn farmer because His accounting profits are negative. He is not currently covering his opportunity costs.

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Oligopoly

Oligopoly . An oligopoly is a market structure with a small number of firms together controlling the market. Oligopoly . There is no single model of oligopolistic behavior. In general there is a spectrum bounded by:. A Contestable Market Model . A Collusive Model .

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Identical cost functions - PowerPoint PPT Presentation

ECON 1001

Oligopoly