ECSENOMICS Chapter 10 Oligopoly and Monopolistic Competition McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Oligopoly and Monopolistic Competition
ECSENOMICS Concentration Ratios Are Quantitative Measures of market Power 1-75 Figure 10-1 Concentration Measured by Value of Shipments in Manufacturing Industries, 1992 4 largest companies Next 4 largest companies Cigarettes 93% Household refrigerators Electric lightbulbs 86%6 Motor vehicl Screw products Tools, dies, and jigs Percent of total shipments McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Concentration Ratios Are Quantitative Measures of Market Power T-75 Figure 10-1
ECSENOMICS Collusive Oligopoly Looks much Like Monopoly T76 Figure 10-2 MC AC MR Quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Collusive Oligopoly Looks Much Like Monopoly T-76 Figure 10-2
ECSENOMICS Monopolistic Competitors Produce Many Similar goods T-77 Figure 10-3 Monopolistic Competition before Entry MO G AC B A MR Quantit McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Monopolistic Competitors Produce Many Similar Goods T-77 Figure 10-3
ECSENOMICS Free Entry of Numerous Monopolistic Competitors Wipes Out Profit 1-78 Figure 10-4 Monopolistic Competition after Entry MR Quantity McGraw-Hilllrwin CopyrightC 2001 The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Free Entry of Numerous Monopolistic Competitors Wipes Out Profit T-78 Figure 10-4