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Lecture 19

EC120 Lecture Notes - Lecture 19: John Kenneth Galbraith, Monopolistic Competition, Zero Zero (Comics)


Department
Economics
Course Code
EC120
Professor
All
Lecture
19

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
Chapter 17: Monopolisc Compeon
 !"#$%&$%$'
2 Extremes Between monopoly and compeon
( &$)$ *$%
( % )*$
In between these extremes: imperfect compeon
Oligopoly: % &!%%$%+%
Monopolisc compeon:$ *$%%$%'%
Characteriscs of monopolisc compeon
(  %%,*$-
( 
.( / #
0 1
0 12%!
0 %3
0 /&
0 4)%%$&
Perfect compeon Monopolisc compeon Monopoly
Number of sellers   
Free entry/exit 5 5 
LR economic pro(ts 6 6 ,
' -
The product (rms sell % 
Firm has market power 0 5,&- 5
D curve facing (rm 7% !!%3 !!0%3
,$$-
Close substute  ,$%-
/%2
$%$
,%%-
Monopoliscally Compeve (rm earing pro(ts in SR
/$&!!0%3
89:
;$#$7**$9!<
%&:8;
Markup: 
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