Lecture A (WK7)

Lecture A (WK7) - Lecture A (WK7) Welcome Back! Most...

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Lecture A (WK7) Welcome Back! Most markets in the U.S. economy fall between the two poles of pure competition and pure monopoly . Real-world industries usually have fewer than the hundreds of producers required for pure competition and more than the single producer that defines pure monopoly. Most firms have distinguishable rather than standardized products and have some discretion over the prices they charge. Competition often occurs on the basis of price, quality, location, service, and advertising. Entry to most real-world industries ranges from easy to very difficult but is rarely completely blocked. This week we examine two models that more closely approximate these widespread markets. You will discover that monopolistic competition mixes a small amount of monopoly power with a large amount of competition. Oligopoly , in contrast, blends a large amount of monopoly power, a small amount of competition through entry, and considerable rivalry among industry firms. To begin, please read:
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This note was uploaded on 06/15/2010 for the course EC 142DLB taught by Professor Graceonodipe during the Spring '10 term at Park.

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Lecture A (WK7) - Lecture A (WK7) Welcome Back! Most...

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