PPT-Convert the Multi-Plant Monopoly into an Oligopoly

To maximize profits two conditions must be satisfied when a firm has two plants Marginal costs of each plant must be equal MC A MC B Marginal revenue must equal each plants marginal cost . 5. 24. 3. 11. Why are Entry Barriers. Sometimes High?. Entry Barriers. A few examples of factors that may serve as . ‘. barriers. ’. to free entry into a market:. economies of scale. government licensing. Game Theory . Chapter 15. Outline. Cartels. The Prisoner’s Dilemma. Oligopolies. When Are Cartels and . Oligopolies Most . Successful?. Government Policy toward . Cartels and . Oligopolies. Business Strategy and . Game Theory . Chapter 15. Outline. Cartels. The Prisoner’s Dilemma. Oligopolies. When Are Cartels and . Oligopolies Most . Successful?. Government Policy toward . Cartels and . Oligopolies. Business Strategy and . 5.3.3. Learning Outcomes. To understand the meaning of the term ‘monopoly’.. To appreciate what is meant by monopoly power and how this can influence a firm’s behaviour.. To understand the main disadvantages and advantages of a firm having monopoly power. . BETWEEN MONOPOLY AND PERFECT COMPETITION. Imperfect competition refers to those market structures that fall between perfect competition and pure monopoly.. Imperfect competition includes industries in which firms have competitors but do not face so much competition.. Perfect Competition. Monopolistic Competition. Oligopoly. Monopoly. No Barriers to Entry (2 answers). Perfect Competition. Monopolistic Competition. Oligopoly. Monopoly. Interdependence. Perfect Competition. Aims. Explain the meaning of oligopoly. Key Concepts. Oligopoly. Collude. Cartels. Price War. An oligopoly occurs when a few firms dominate a market.. In the UK. Car industry. The petrol market. The airline industry. Chapter 8. McGraw-Hill/Irwin. Copyright © . 2015 . by . McGraw-Hill Education (Asia). . All rights reserved.. Learning Objectives. Distinguish among three types of imperfectly competitive industries and describe how imperfect competition differs from perfect competition. MARKET STRUCTURE . in which only . ONE . seller sells a product for which there are no close substitutes.. A monopoly is . A PRICE SETTER. , . RESTRICTS THE MARKET . and. IS THE ONLY SELLER.. Monopoly. Introduction. In economics, a monopoly is defined as a persistent market situation where there is only one provider of a product or service. Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.. competition. . between . firms. operating in the . same industry.. INDUSTRY. . (Fast Food- type of industry). FIRM. . (NAME OF BUSINESS). FIRM. . (McDonald’s). FIRM. . (NAME OF BUSINESS). STORE. Economics of Oligopoly Topic 3.3. 9 Economics of Oligopoly Topic 3.3. 9 Students should be able to: Understand the characteristics of this market structure with particular reference to the interdependence of The word Monopoly is a combination of two words in which “mono” implies “single” and “poly” means “seller”. Therefore, the market controlled by a sole trader is said to a Monopoly market.. Students will be able to identify and/or define the following terms:. Monopoly. Natural Monopoly. Patent. Do . Now. What is a barrier to entry?. Any condition that makes it difficult to enter a market..