CHAPTER 11: MONOPOLISTIC COMPETITION AND …

CHAPTER 11: MONOPOLISTIC COMPETITION AND oligopoly introduction While perfect COMPETITION and monopoly represent the extremes of market structures, most American firms are found in the two market structures between those extremes. MONOPOLISTIC COMPETITION is very similar to perfect COMPETITION , though the firm has a small amount of market power . The oligopoly is very similar to the monopoly, though the firm does have a few competitors and the rivalry among those firms leads to an interdependent relationship among firms. CHAPTER 11 introduces these two models and explains the decision making of firms in these industries. This CHAPTER completes the discussion of the market structures, which constitute the heart of the microeconomics course. Material from CHAPTER 11 consistently appears on the AP microeconomics exam in a few multiple-choice questions and, in recent years, in free-response questions. MONOPOLISTIC COMPETITION MONOPOLISTIC COMPETITION is a market structure in which a large number of firms produce a differentiated product and firms can easily enter or exit the industry.

CHAPTER 11: MONOPOLISTIC COMPETITION AND OLIGOPOLY Introduction ... though the firm has a small amount of market power. The oligopoly is very similar to the monopoly, though the firm does have a few ... Chapter 11: Monopolistic Competition and Oligopoly + + =

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  Introduction, Chapter, Power, Market, Competition, Chapter 11, Oligopoly, Market power, Monopolistic, Monopolistic competition and, Monopolistic competition and oligopoly introduction

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