Unformatted text preview: QUICK QUIZ: Define oligopoly and monopolistic competition and give an example of each. MARKETS WITH ONLY A FEW SELLERS Because an oligopolistic market has only a small group of sellers, a key feature of oligopoly is the tension between cooperation and self-interest. The group of oligopolists is best off cooperating and acting like a monopolist—producing a • Tap water • Cable TV Monopoly (Chapter 15) • Novels • Movies • Wheat • Milk Monopolistic Competition (Chapter 17) • Tennis balls • Crude oil Oligopoly (Chapter 16) Number of Firms? Perfect Competition (Chapter 14) Type of Products? Identical products Differentiated products One firm Few firms Many firms Figure 16-1 T HE F OUR T YPES OF M ARKET S TRUCTURE . Economists who study industrial organization divide markets into four types— monopoly, oligopoly, monopolistic competition, and perfect competition....
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.
- Spring '10