Economics 11
- Created by: Gabrielle
- Created on: 30-12-13 12:04
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- Monopolistic Competition
- A market structure in which many firms sell products that are similar but not identical
- E.g. Restaurants
- The Long-Run Equilibrium
- When firms are making profits new firms have an incentive to enter the market
- Supply Increases
- Existing firms reduce prices
- When firms are making profits new firms have an incentive to enter the market
- Oligopoly is where competition is between a few
- The oligopoly price is less than the monopoly price but greater than the competitive price
- Competition Law designed to disuade collusion
- Duopoly is an oligopoly with just two members
- The group of firms colluding is a cartel
- Game theory is the study of how people behave in strategic situations
- A market structure in which many firms sell products that are similar but not identical
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