Oligopoly Pricing Are bigger companies more efficient?

Slides:



Advertisements
Similar presentations
Market Structures. Perfect Competition Characteristics –Many sellers with identical goods and services – goods are perfect substitutes for each other.
Advertisements

CONTEMPORARY ECONOMICS© Thomson South-Western 7.2Monopolistic Competition and Oligopoly  Identify the features of monopolistic competition.  Identify.
The Four Types of Market Structure
Monopolistic Competition and Oligopoly
Impossible Barriers to Entry Perfect Competition Monopolistic Competition Oligopoly Monopoly.
Types of Market Structures. Perfect Competition A market where perfect competition is subject only to the laws of supply and demand The number of firms.
PERFECT COMPETITION 7.1.
The Four Conditions for Perfect Competition
Market Structures.
Economics Chapter 8 Review. 1 A(n) ___________ market has many buyers and sellers that all sell identical goods. Perfectly competitive.
Market Structures. Pure/ Perfect competition is a market structure in which a large number of firms all produce the same product. 1. Many Buyers and Sellers.
Economics: Principles and Applications, 2e by Robert E. Hall & Marc Lieberman.
Oligopoly Behavior & Game Theory
Market Structures 7.1. Decline of laissez-faire As business grew, so did the role gov’t played in it By 1800s, mergers and trusts had changed the nature.
Microeconomics Unit III: The Theory of the Firm. The selling environment in which a firm produces and sells its product is called the market structure.
Market Structures The different types of markets and the way in which businesses compete.
 1. Shortage occurs:  When demand is greater than qty supplied at the current price.  If left alone (no gov’t interference), prices will rise  2. Surplus:
# McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Monopolistic Competition and Oligopoly 9.
Market Structure Summary TEST REVIEW.
Date: April 13, 2011 Topic: Monopolistic Competition and Oligopoly Aim: Why does monopolistic competition exist? Do Now: Read the article.
KECSS Ms. Murren Economics10/31/11 Outcome: SWBAT compare oligopolies and monopolistic competition.
Market Structures Ohh to be a seller in the market of my choice!
Types of Economic Competition. Determining the Type of Economic Competition The number of firms competing in the market The amount of similarity between.
Market Structures Amount and Degree of Competition among Firms Competing in the same Industry ©2012, TESCCC Economics Unit 4, Lesson 2.
COMPETITION Business Economics. Market Structure Nature & degree of competition among firms in same industry. Industry - companies engaged in a particular.
Chapter 7 Market Structures. 4 conditions for pure competition: 1. Large numbers of buyers and sellers act independently 2. Sellers offer identical products-
Market structures. What is market structure? Market structure refers to the nature and degree of competition in the market for goods and services. The.
Other Market Structures. Monopolistic Competition  Many companies sell products that are similar, but not identical Four Conditions  Many firms  Few.
Highly Competitive Markets.  Aim: To what extent is OPEC a monopoly?  Homework: Read section on Imperfectly Competitive Markets, write down definitions.
Oligopoly Pricing Chapter 16 completion.
A market structure is the nature and degree of competition among the firms operating in the same industry. There are four different market structures….
CHAPTER 15 Oligopoly PowerPoint® Slides by Can Erbil © 2004 Worth Publishers, all rights reserved.
Ch. 16 Oligopoly. Oligopoly Only a few sellers offer similar or identical products Actions of any seller can have large impact on profits of other sellers.
1 Part 5 ___________________________________________________________________________ ___________________________________________________________________________.
Market Structures. Definition Nature and degree of competition among firms operating in the same industry Nature and degree of competition among firms.
Introduction to Market Structures. Markets and Market Structures What is a market? An arrangement where buyers and sellers of a particular good, service,
Aim:What is market structure? HW:pg 154 # 1,5 9Hxy-TuX9fs.
Title Layout SUBTITLE And it’s Friday…. SSEMI4 The student will explain the organization and role of business and analyze the four types of market structures.
Chapter 7SectionMain Menu Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the.
Journal #36 Jelly Beans Supply and Demand 1.The price of sugar increases 2.The price of bubble gun, a close substitute for jelly beans, increases. 3.A.
Monopolistic Competition Chapter 17 Pages
Market Structures Economics Unit 4, Lesson 2
Market Structures 4 Different Types.
Market Structures Economics Unit 4, Lesson 2
Market Structure 1 Economics Unit 4
Jeopardy Example A merger between firms in the same industry
Ch. 16 Oligopoly.
Chapter 16: Oligopoly.
Monopolistic Competition
Answer all questions in full sentences.
Business Organizations and Competition
Competition and Market Structure
Economics Market Structures.
Chapter 7 – Market Structures
Unit 3- Microeconomics Market Structures.
Market Structures SSEMI4 The student will explain the organization and role of business and analyze the four types of market structures in the U.S.
The Four Conditions for Perfect Competition
Market structures microeconomics.
Competition and Market Structures
FIGURE 8.1A The Monopoly Model with Positive Economic Profit
MARKET STRUCTURES The structural condition of a market has an enormous influence on supply, demand, pricing, efficiency, fairness and resource allocation.
Is there enough competition?
Characteristics of Market Structures
Other Market Structures
FOUR TYPES OF MARKET STRUCTURES
Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the marketplace? What are prices.
Econ 100 Lecture 4.2 Perfect Competition.
Perfect Competition Econ 100 Lecture 5.4 Perfect Competition
Market Structures (4 Different Types)
Perfect Competition What conditions must exist for perfect competition? What are barriers to entry and how do they affect the marketplace? What are prices.
Presentation transcript:

Oligopoly Pricing Are bigger companies more efficient?

Perfect Competition Monopolistic Competition Oligopoly Monopoly Most competitive Lowest Price Highest Quantity Least competitive Highest Price Lowest Quantity 4 Market Structures 2-8 Firms dominate industry

Oligopoly: Examples Airlines & Commercial Aircraft Manufacturers Automobile CompaniesHardware Stores

Oligopoly Few interdependent sellers Identical or slightly differentiated products difficult to enter or leave market incomplete information varying degree of price control Market Characteristics

Oligopoly Company 1 Company 2 Actions of your competition affect you! INTERDEPENDENCE

Non-cooperative BehaviorCooperative Behavior Should I cooperate? SELF INTEREST? Oligopolies are Interdependent

End Result of Oligopolies Prices higher than perfect competition but less than monopoly Economic profit > 0 in both short run & long run Risk of collusion if firms cooperate to raise prices

Article: Rise of Oligopolies 3 Reasons why Benefits Costs Risk?

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.