Pure Monopoly

Pure Monopoly Single seller No close substitute Price maker Blocked entry Nonprice competition

Revenue and cost of a pure monopolist

Marginal & Average Revenue for a pure monopolist

Total Revenue for a pure monopolist

Output and Price Determination; Rule: MR=MC

Inefficiency of pure monopoly relative to a purely competitive industry

Monopolistic Competition and OligopolyRelative large number of sellers: small market share, no collusion, independent actionsDifferentiated products Easy entry and exit Advertising Monopolistically Competitive industries

Output and Price

Output and Price

Output and Price

Oligopoly A few large producers Homogeneous or differentiated productsControl over price, but mutual interdependence Entry barriers

Oligopoly Behavior: A Game Theory Overview

Kinked-Demand Theory: Noncolussive Oligopoly