PAGE NO.

DATE:

Clizooly. anl Kinhed Demand Curve

(cO) when dDel a uinue demaod euYVe

hen Y an
have
maruet
olgposhe
-Haruet shu hure in which contot over an
Oligopoin tte handi ot a Peo ate 3ellers obo 9wr a
Aorifant
8hare ot tne maruet.
feahurel
(D Hore realishe than youy compeihve Ynasuet &rrckte
pertechvel8
few Srms
han 2( more
ecae

large rs AgAutomobile 1t woyld be a duopoly)

S) Difereniated APod (or it can be honoenou also)
(4) rce mauers not price taueYS
Bariers to enry y exit exiss /economie of sale, 3unu ogia

Pie PigidibA
oims in oligopoly get up theiY price baod on their
asumphon oB uhat etres other hrm's price will be.
G price is rigid it
do esn't change eaaily
Comnpehhon is of the nahre of
nonprice
Gbaued on Poacros other han price
ads, ualy ather sqle service e
A Prot max
misahon. i n0t the sole obiechue
also aim b
ma miSahon e t
gain aruet shae, sale

Tort
(o Thiou and tome u urrent day marueR which hau
an
the fearr
1S an
olig°pa
 PAGE NO.
DATE:

A ule of Lhumb is that the top 5 birroe hav

botu)en them
this is concenrahon raho

Can be colleive
o'polie
Callueion leadl D the Pormah'on of ca te ls.

exist in an
(e price vigity /price sheuinesmanasilaeuu
(rie maya the ?)
morba milea ot oliopy
olizopol? C verg imp concept, therorgagitt

’ Demand is pce Ioelashe in response to a price drop, due to

compe titors bollousing guit so not to tose maruet shaYe
ula oru hirmn avarde product nd e pr
CG athaya hu oligpolyil Lcaranam
coracha , avarude product nie de manel maran ponillq
WllaVarum aVarudo price horauuLuumn appo| ellam
uoracha brm nnu
P2ay4 pole avyum adhga price
un Lirta hila,
advanege
rise
3 Demand is price elashc In respense to a price
their current
Comehors can gain atuet share by Tefaining
priies aade produet ode
Girm prie eutanenl - bqui ullava yu de
un arY u m avarde vangila
denaro uo price uoa
product anu vargug n
maret Shar e
orayun

illa

there
ll ’ hent e
 PAGE NO.

DATE:

marhet shuc hre will egultin a nizher price than

(ompebbre maruet but not high monopog
ro maintaio Some
They Chime tO
in an olopoly) wìll be able
prosE io he due o me bavn'ers to enty a exiE

Achons ot one Brm will mDact the oher hms n he ma

Gtheg are ioterlependent

 PAGE NO.
DATE
Beraue ol he rature ot ples n
Kioued Demarel Curve
Op afecing the o rn
frice

lemat

Quantity
aarginal also difeerent

m
aivel

my

dArm
mr hrm
 haPPen
Here pYohH maMi nisahon
at FH=MC3 PAGE NO.

DATE:
the p int wher
Me graph y MCaaph totege
(o s it possible to Rind tne prokt mazimisin outpa hrom this
qrnr'Cae, it is re ty eay too)

noYna cuYUe
) Add your
That's it

-’ where co* is the proit mazi miei0q ourput

whee
devel.
p* is he highest price me
consuroes will be
wiuing to pay for fhose Q* unik

n fhe short un brn will maue rmoney t Price Average

ogt Curve'
(ose monf
mon eg frice < Cos
Avergu S
toteau even Avera

’ This proit in ro will be

prorected by he hiz cost
enhrg io he maYuet , au it
preveoe new Brms hro
joinig e
naret.
Rehcsher Eashe’ Small ehange in re cauee a
uhe ’ Small
huge charg
cnaIn pricc uter a &mall hang in 7t
PAGE NO. deynanded
DATE:

Aoplicahon t me concept ot frice rgidyeu oemand

inelarbe)
Prie etath part

Dernane
Curue
Price
ARD inelash par!
When a hirm in o Elastic Demand )
oligopotg Ppriceg

when price
y dernand ed bg peopie
Psom rhat Brn balls droehtally
teaking othe rm ro To0se

() hen a hrm in oi gopel decyeager price ( 1nelashc deman

When prie decreael,

fag haf icm do nat

fhat much, nepce
chage
Brm l be indieY ent
veducig the
Shave do no+ that
much. chag
Boh ) 40) aue fhe hrm fo maue thety
ie do noB incecce
Price a f
lene note: roGt mairnisiog D n
i o leYS e c t , not att tre

point of PAGE NO.

DATE:
interchon
AnotheY aplica hon of coDCept wn Birms in lgopo
harge he prite
maginal cos ts ci change

frice Price

AR =D

when HC increase from

price

MC2
Me1

ShU he price

the blw he daghed ( a ) part ot th

H2 cuY Ve here wll be no charye in prce s ty
wren NC ehar no charze to price is veq
 PAGE NO.

DATE:

Olizepaly ollusion

wnen he Grms o a C0me ogether and behaVe al an

menepl Collueion

whern Pirms collude they have agreements not to compele, The

preducf
Rrms oYee aSpecihed price and the guanh hy ot he
each wil produce.

They relue the output and eharge h'zher moropoly prce

Unshable
Collusions CCarels) aYe
ioherentg rms nave
G beauye individugl
1 ncentive to cheat he nev

hms by rarsinq preduchon

abore fhe desie natkd leveS

froot
-’ re -Coll Uion
A rms hact t t M t

’ Post -Collusion
highe pict
each rm now procuca

individual
A louwer output , he
brm is oot cat me prohh
maximsin
rnahe
iocreaue produchon to
Hence he
ME

ailios
lottnionflavbek aluays en up