Junior College 2

Economics

Oligopoly
 Did You Know That...
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 Oligopoly
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 Oligopoly

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Strategic Dependence
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Why oligopoly occurs
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• Vertical Merger
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• Horizontal Merger
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Measuring industry concentration

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 Computing the
Four-Firm Concentration Ratio
Four-Firm Domestic Concentration Ratios
for Selected U.S. Industries
 E-Commerce Example:

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 Oligopoly, Inefficiency,
and Resource Allocation

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The Kinked Demand Curve
 MR Curve
for the top part of the Demand Curve
 Drawing MR Curve
for the bottom part of the Demand Curve
 MR Curve
for the bottom part of the Demand Curve
The Kinked Demand Curve
and the MR Curve
The MC curve intersects the MR curve
in the vertical segment.
TC = ATC . Q