This document discusses oligopoly and monopolistic competition market structures. It defines oligopoly as a market with a few large firms that dominate. Key features of oligopoly include few firms, some variety of goods, high barriers to entry, and some control over prices. The document also defines monopolistic competition as a market with many similar but not identical products. Features include many firms, some variety and differentiation of goods, low barriers to entry, and some control over prices. Non-price competition strategies under monopolistic competition are also outlined.

1. Oligopoly and
Monopolistic
Competition
By: Mr.
Gayares

2. Current Events
Read page 11: Economic Freedom...
Why do economic freedom falls in different
countries?

3. Analyze Perfect competion and Monoploy market structures
using these indicators:
NUMBER OF FIRMS:
: VARIETY OF GOODS
BARRIERS TO ENTRY:
CONTROL OVER PRICES:

4. Oligopoly
• A market
structure in which
a few large firms
dominate a
market

5. Features of Oligopoly
NUMBER OF FIRMS: FEW
VARIETY OF GOODS: SOME
BARRIERS TO ENTRY: HIGH
CONTROL OVER PRICES: SOME

6. Terms
• Price war- a series of
competitive price cuts
that lowers the
market price below
the cost of production

7. Terms
• Price fixing- an
agreement among
firms to charge one
price for the same
good

8. Terms
• Collusion- an
agreement among
firms to divide the
market, set prices, or
limit production

9. Terms
• Cartel- a formal
organization of
rpoducers that agree
to coordinate prices
and production
• Why do you think
cartels do not last
long?

10. Oligopoly cartoons

11. Oligopoly cartoons

12. Monopolistic Competition
• A market structure in
which many
companies sell
products that are
similar but not
identical

13. Features of Monopolistic Competition
NUMBER OF FIRMS: MANY
VARIETY OF GOODS: SOME
BARRIERS TO ENTRY: LOW
CONTROL OVER PRICES: SOME

14. Non-price Competition
• Physical
Characteristics- new
size, color, shape
texture, or taste

15. Non-price Competition
• Location- how
accessible or
conducive the
location to the
buyers

16. Non-price Competition
• Service Level- ‘the
conventional vs.
Fastfood example”.

17. Non-price Competition
• Advertising- perceive
product differences