Menu_09_Nov_10

Menu_09_Nov_10 - TODAYS MENU: Tuesday 09 November 2010 I....

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
TODAY’S MENU: Tuesday 09 November 2010 I. BUSINESS A. Practice Problems 1. Chapter 16: 1-8, 10, 14, 15 2. Chapter 16 Appendix: Both B. Third exam: Next time II. SUBSTANCE A. Monopolistic competition 1. Efficiency and excess capacity 2. Examples B. Oligopoly 1. Market structure a. Few sellers, many buyers i. Concentration ratio ii. Implications b. Homogeneous or differentiated goods i. Implications c. Significant barriers to entry/exit i. Implications 2. Firm behavior: Compete or cooperate? a. Cartel i. Definition ii. Behavior b. Price leadership i. Definition ii. Behavior c. Price competition i. Contestable markets 3. Duopoly example: Game theory 4. General conclusions III: NEXT TIME A. Third exam over Chapters 12, 14, 15, 16 Monopolistic competitive market o Long run economic profit will be zero o A lot of ways to differentiate your product o Monopolist sets price BUT prices can be different due to the differentiate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Location is example o Firms will have different demand structures Perfectly competitive market o Consumers are perfectly elastic in their demand o Only one price for all goods Suppose that t-shirts are sold in a monopolistically competitive market. Suppose further that the market price is currently $10 per shirt and the average total cost is $9 per shirt. Over time, everything else
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Menu_09_Nov_10 - TODAYS MENU: Tuesday 09 November 2010 I....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online