ECON 101 Chapter 11: Imperfect Competition and Strategic Behaviour
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ECON 101 Full Course Notes
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The italic texts are quoted from the textbook. Chapter 11: imperfect competition and strategic behaviour i. Large grocery rms, life insurance rms: rms can grow and be dominant in an industry but they still competing iii. In such industries, the rm itself must choose its product"s characteristics: firms can set prices i. since rms are all producing differentiated products then they can set their own prices. Monday, november 28, 2016: rms set prices to meet their goal on revenue, price setter - a rm that faces a downward-stopping demand curve for its product. In market structures other than perfect competition, rms set their prices and then let demand determine sales. !3: each rm ignores competitor"s actions and only make decisions on their own. Monday, november 28, 2016 price and product: freedom of entry and exit, predictions of theory, short-run decision i.
