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Microeconomics/Oligopolistic Competition
Reference material by Wikibooks contributors. This retains its source identity and is not 411 news reporting.
Goals:
To explain how Duopoly and Oligopoly works
To explain price-based competition (Bertrand)\
To achieve these goals, we build on the definitions from Perfect Competition:
Profit
The Short Run (SR) v. The Long Run (LR)
Production Function
Principle of diminishing returns
Firm Production Decision
Profit Maximization Rule
Oligopolistic Competition
Introduction to oligopolies, introduce the special case of duopolies.
Case 1: Duopolistic Competition
Case 2: Oligopolistic Competition
Bertrand competition
Price setting
Case 3: Bertrand Competition