BUS 082 Lecture Notes - Lecture 6: Monopolistic Competition, Oligopoly

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: gradin

Document Summary

Factors of production and distribution are privately owned and operated for profit. Owners decide what and how much to produce. Right to own a business and keep profits. No seller is large enough to determine a price. A lot of companies making essentially the same thing but not exactly. There is something differentiable to make you want to buy their product over the other. They make you believe there is a crazy difference. These exist within free market capitalism but they go against what free market capitalism it. Few enough so if their not regulated they could come together and collude prices. Requirements to enter into those industries is too hard so not many people go into it. There is only one seller who is capable of charging a crazy amount. Monopolies are typically in utilities such as energy and water. They can sue a company when it seems to be becoming monopolistic.