tailieunhanh - Lecture Microeconomics (20/e): Chapter 13 - Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn

Chapter 13 - Monopolistic competition and oligopoly. Pure competition and pure monopoly are the exceptions, not the rule, in the . economy. In this chapter, the two market structures that fall between the extremes are discussed. Monopolistic competition contains a considerable amount of competition mixed with a small dose of monopoly power. Oligopoly, in contrast, implies a blend of greater monopoly power and less competition. | Chapter 13 Monopolistic Competition and Oligopoly Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Pure competition and pure monopoly are the exceptions, not the rule, in the . economy. In this chapter, the two market structures that fall between the extremes are discussed. Monopolistic competition contains a considerable amount of competition mixed with a small dose of monopoly power. Oligopoly, in contrast, implies a blend of greater monopoly power and less competition. First, monopolistic competition is defined, listing important characteristics, typical examples, and efficiency outcomes. Next we turn to oligopoly, surveying the possible courses of price, output, and advertising behavior that oligopolistic industries might follow. Finally, oligopoly is assessed as to whether it is an efficient or inefficient market structure. The Last Word shows how a few big companies now . | Chapter 13 Monopolistic Competition and Oligopoly Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Pure competition and pure monopoly are the exceptions, not the rule, in the . economy. In this chapter, the two market structures that fall between the extremes are discussed. Monopolistic competition contains a considerable amount of competition mixed with a small dose of monopoly power. Oligopoly, in contrast, implies a blend of greater monopoly power and less competition. First, monopolistic competition is defined, listing important characteristics, typical examples, and efficiency outcomes. Next we turn to oligopoly, surveying the possible courses of price, output, and advertising behavior that oligopolistic industries might follow. Finally, oligopoly is assessed as to whether it is an efficient or inefficient market structure. The Last Word shows how a few big companies now compete with one another via the Internet as very competitive oligopolists. Monopolistic Competition Monopolistic competition Relatively large number of sellers Product differentiation Easy entry and exit Nonprice competition like advertising LO1 In monopolistic competition, firms can differentiate their products by the product attributes, by service, with location, or with brand names and packaging. There is relatively easy entry and exit, just not as easy as with perfect competition. That is why the number of sellers is not as large as in perfect competition, but it is relatively large. This type of market experiences some pricing power due to the differentiated product. If a firm goes to the trouble and expense of differentiating their product they should let people know about it. They can do this through advertising. Product differentiation and advertising are ways that firms can compete other than by offering the lowest price. Monopolistically Competitive Industries Industry