Monopolies
Monopolistic Comp: can earn short term profits but not long term, Free entry/exit into the
market, Many firms Firm’s demand curve is downward-sloping, often due to product
differentiation. Firms demand curve=market demand curve. Firm is price maker.
*Oligopoly: market dominated by a small number of firms, where the actions of each firm
directly affect the profits of the other firms. An oligopoly lies between a pure monopoly and a
pure competitive market. Many barriers to entry still exist (otherwise it would just be monopolist
competition), Thus, the profit-maximization problem of the oligopolist is to choose the price
and/or quantity that will maximize their profit given the optimal choices of the other