Microeconomics,, 16th Canadian Edition

What is true for cars and TVs is true for virtually all consumer goods. Any one manufacturer will typically have several product ...

holding prices constant. Only after changes in demand are expected to persist will firms adjust their entire list of prices. The ...

consumers to shift their spending away from other types of products and toward the monopolist’s product. Product Quality Secon ...

Behaviour in the first group of industries can be understood with the theory of monopolistic competition. To understand behaviou ...

11. 2 Monopolistic Competition The theory of monopolistic competition was originally developed to deal with the phenomenon of pr ...

Many of the small, service-based businesses located in your neighbourhood are monopolistic competitors—dry cleaners, hair stylis ...

There is freedom of entry and exit in the industry. If profits are being earned by existing firms, new firms have an incentive ...

Figure 11-2 Profit Maximization for a Firm in Monopolistic Competition Predictions of the Theory Product differentiation, which ...

The short-run position for a monopolistically competitive firm is similar to that of a monopolist—profits can be positive, zero, ...

Most of the service-based businesses in your neighbourhood, such as hair salons, exist in monopolistically competitive markets. ...

The Excess-Capacity Theorem Part (ii) of Figure 11-2 makes it clear that monopolistic competition results in a long-run equilibr ...

seemed to suggest that modern market economies were systematically inefficient. In time, however, it was generally accepted that ...

11. 3 Oligopoly and Game Theory Industries that are made up of a small number of large firms have a market structure called olig ...

market niches in which Toyota plays a smaller role. Or they might leave their output levels unchanged and introduce new options ...

The Basic Dilemma of Oligopoly The basic dilemma faced by oligopolistic firms is very similar to the dilemma faced by the member ...

reached when firms proceed by calculating only their own gains without cooperating with other firms is called a non-cooperative ...

Some Simple Game Theory Game theory is used to study decision making in situations in which there are a number of players, each ...

Figure 11-3 The Oligopolist’s Dilemma: To Cooperate or Compete? Cooperation to determine the overall level of output can maximiz ...

$20 million. The lower-right cell shows that if each firm produces two- thirds of the monopoly output, each firm will earn a pro ...

incentive to cheat and produce two-thirds of the monopoly output. Thus, the cooperative outcome can only be achieved if the firm ...