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Economics · 37 cards

Monopolistic Competition and Oligopoly (Economics)

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Recall cards on the two intermediate market structures between perfect competition and monopoly. Monopolistic competition: many firms competing with differentiated products, how differentiation by physical features, location, intangibles, and perception gives each firm a mini-monopoly, short-run profit or loss versus long-run zero economic profit through entry and exit, allocative and productive inefficiency with excess capacity, the offsetting benefit of product variety, and the role of advertising. Oligopoly: a few large firms with mutual interdependence, barriers to entry and economies of scale, collusion, cartels, and tacit collusion, the prisoner's dilemma and dominant strategies, the kinked demand curve, and the lysine price-fixing case.

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