Acceptable logotypeECO 2030. Principles of Economics-Price Theory

Imperfect Competition

Oligopoly

  1. Few firms
  2. Homogeneous or heterogeneous product
  3. Barriers to entry
  4. An example: car sales

Monopolistic Competition

  1. Many firms
  2. Heterogeneous product
  3. Free entry and exit

Issues

  1. Price competition
  2. Non-price competition (e.g., advertising)
  3. Collusion
  4. Public policy