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Oligopoly参考
Oligopoly Chapter 16 Imperfect Competition Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly. Imperfect Competition 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. The Four Types of Market Structure Markets With Only a Few Sellers Because of the few sellers, the key feature of oligopoly is the tension between cooperation and self-interest. Characteristics of an Oligopoly Market Few sellers offering similar or identical products Interdependent firms Best off cooperating and acting like a monopolist by producing a small quantity of output and charging a price above marginal cost A Duopoly Example A duopoly is an oligopoly with only two members. It is the simplest type of oligopoly. A Duopoly Example: Demand Schedule for Water A Duopoly Example: Price andQuantity Supplied The price of water in a perfectly competitive market would be driven to where the marginal cost is zero: P = MC = $0 Q = 120 gallons The price and quantity in a monopoly market would be where total profit is maximized: P = $60 Q = 60 gallons A Duopoly Example: Price andQuantity Supplied The socially efficient quantity of water is 120 gallons, but a monopolist would produce only 60 gallons of water. So what outcome then could be expected from duopolists? Competition, Monopolies, and Cartels The duopolists may agree on a monopoly outcome. Collusion The two firms may agree on the quantity to produce and the price to charge. Cartel The two firms may join together and act in unison. Competition, Monopolies, and Cartels Although oligopolists would like to form cartels and earn monopoly profits, often that is not possible. Antitrust l
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