Name: San Ratana

Subject: Managerial Economics

Class: MAA, weekend (Saturday)
Content
1. Pricing in an Oligopolistic Market: Rivalry and Mutual Interdependence The strategic
use of cost:
2. Competing in Imperfectly Competitive Markets
3. The Reality of Monopolistic Competition and Oligopoly
Strategy: The Fundamental Challenge for Firms in Imperfect Competition

Overview:

 Pricing in an Oligopolistic Market: Rivalry and Mutual Interdependence The

strategic use of cost:
- Oligopolies are typically characterized by mutual interdependence where various
decisions such as output, price, advertising, and so on, depend on the decisions
of the other firm(s).
- Oligopoly arises when a small number of large firms have all or most of the sales
in an industry.

 Competing in Imperfectly Competitive Markets:

- Imperfect competition typically refers to any economic market that does not meet
the rigorous assumptions of a hypothetical perfectly competitive market.
- In an imperfect competition environment, companies sell different products and
services, set their own individual prices, fight for market share, and are often
protected by barriers to entry and exit, making it harder for new companies to
challenge them.

 The Reality of Monopolistic Competition and Oligopoly:

- One type of imperfectly competitive market is called monopolistic competition.
Monopolistically competitive markets feature a large number of competing firms,
but the products that they sell are not identical. Most of the markets that
consumers encounter at the retail level are monopolistically competitive.

- The other type of imperfectly competitive market is oligopoly. Oligopolistic markets

are those dominated by a small number of firms. Oligopolies are characterized by
high barriers to entry with firms choosing output, pricing, and other decisions
strategically based on the decisions of the other firms in the market.
Strategy: The Fundamental Challenge for Firms in Imperfect Competition:

- In imperfect completion environment, firms sell different products and services, set
their own individual prices, fight for market share, and are often protected by barriers
to entry and exit.
- Imperfect competition is common and can be found in the following types of market
structures: monopolies, oligopolies, monopolistic competition, monopolies, and
oligopolies.