TOPIC 6
Monopoly, Imperfect Competition and Oligopoly

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With this topic we move from the world of perfectly competitive markets in which firms are "price takers" into the more common real-world situation where firms exercise some control over the price of their products in the market.  

Objectives:

  • To introduce the analysis of market structures which deviate from the perfectly competitive model
  • To review the different approaches to such cases taken by writers such as Joseph Schumpeter, Joan Robinson and Edward Chamberlin
  • To use the concept of consumer surplus developed in an earlier topic to explore the implications price discrimination by monopolists
  • To provide an introduction to the theory of oligopoly.


Copyright 1999 K.J. Rea