MGT437H5 Chapter Notes - Chapter 2: Product Bundling, Avail, Price Discrimination
Document Summary
Monopoly change: highly competitive market power possessed by sellers. In pc demand curve = flat line bc preseume can sell as much as it wants up to production limit therefore price, demand, marginal revenue are the same. Mc = p: monopolist = mr = mc, demand curve = single selling firm, demand curve downward sloping, and corresponds to any quanitity and price on demand curve less than price. Will sell at higher price associated with quantity on demand curve: monopolist decides quantity to produce. Oligopoly + cartels: unless monopoly allowed to exist due to gov license or protection from a strong patent. If one firm more efficient than the other and provides higher volume. Some firms may have inventive to not share all info and keep some details private. Production decisions in non-cartel oligopolies: bc of issues stated above, many cartels do not function. Therefore markets have few sellers have signif share of market sales.
