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Chapter 3B: Spectrum of Market Competition - Coggle Diagram
Chapter 3B: Spectrum of Market Competition
oligopoly
high barriers of entry
differentiated products or homogenous products
few and dominant sellers (5 companies 95%)
demand curve (AR curve)
Non-collusive oligopolist- face a kinked downward sloping demand curve, price depends on reactions of rivals to a price change.
Collusive oligopolist- face a downward sloping curve. Lots of control over the market
imperfect knowledge
monopolistic competition
no barriers of entry
firms produce slightly differentiated goods ( real or perceived)
many sellers in the industry
downward sloping, relatively price elastic curve
some control over price
imperfect knowledge
perfect competition
no barriers of entry
homogenous, similar products
many sellers in the industry, insignificant mkt share
horizontal demand curve(AR curve)
firm is a price taker
perfect knowledge
monopoly
completely blocked or extremely high barriers of entry
Unique
one seller
imperfect knowledge
downward sloping price inelastic demand curve(AR curve)
firm has considerable control over price