Ebook Managerial economics andnbsp;business strategy (9/E): Part 2
➤ Gửi thông báo lỗi ⚠️ Báo cáo tài liệu vi phạmNội dung chi tiết: Ebook Managerial economics andnbsp;business strategy (9/E): Part 2
Ebook Managerial economics andnbsp;business strategy (9/E): Part 2
www.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2c interaction shape optimal decisions in oligopoly environments.LO2 Identify the conditions under which a firm operates in a Sweezy. Cournot. Stackelberg. or Bertrand oligopoly, and the ramifications of each type of oligopoly for optimal pricing decisions, output decisions, and firm profitsLO3 Apply Ebook Managerial economics andnbsp;business strategy (9/E): Part 2 reaction (or best-response) functions to identify optimal decisions and likely competitor responses in oligopoly settings.LO4 Identify the conditionsEbook Managerial economics andnbsp;business strategy (9/E): Part 2
for a contestable market, and explain the ramifications for market power and the sustainability of long-run profits.headLINECrude Oil Prices Fall, buwww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2gasoline prices. In a few isolated areas, however, consumers cried foul because gasoline retailers did not pass on the price reductions to those who pay at the pump. Consumer groups argued that this corroborated their claim that gasoline retailers In these areas were colluding in order to earn monop Ebook Managerial economics andnbsp;business strategy (9/E): Part 2oly profits. For obvious reasons, the gasoline retailers involved denied the allegations.Based on the evidence, do you think that gasoline stations inEbook Managerial economics andnbsp;business strategy (9/E): Part 2
these areas were colluding in order to earn monopoly profits? Explain.270www.downloadslide.netManagerial Economics and Busins-----INTRODUCTIONUp untiwww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2aximization in perfectly competitive and monopolistically competitive markets. In these types of markets, so many firms are competing with one another that no individual firm has any effect on other firms in the market. At the other extreme, we examined profit maximization in a monopoly market. In t Ebook Managerial economics andnbsp;business strategy (9/E): Part 2his instance there is only one firm in the market, and strategic interactions among firms thus are irrelevant.This chapter is the first of two chapterEbook Managerial economics andnbsp;business strategy (9/E): Part 2
s in which we examine managerial decisions in oligopoly markets. Here we focus on basic output and pricing decisions in four specific types of oligopowww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2 advertising, research and development, entry into an industry, and so forth. First, let US briefly review what is meant by the term oligopoly.CONDITIONS FOR OLIGOPOLYOligopoly refers to a situation where there are relatively few large firms in an industry. No explicit number of firms is required fo Ebook Managerial economics andnbsp;business strategy (9/E): Part 2r oligopoly, but the number usually is somewhere between 2 and 10. The products the firms offer may be either identical (as in a perfectly competitiveEbook Managerial economics andnbsp;business strategy (9/E): Part 2
market) or differentiated (as in a monopolistically competitive market). An oligopoly composed of only two firms is called a duopoly.Oligopoly is perwww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2poly. But from the viewpoint of the manager, a firm operating in an oligopoly setting is the most difficult to manage. The key reason is that there are few firms in an oligopolistic market and the manager must consider the likely impact of her or his decisions on the decisions of other firms in the Ebook Managerial economics andnbsp;business strategy (9/E): Part 2industry. Moreover, the actions of other firms will have a profound impact on the manager’s optimal decisions. Il should be noted that due to the compEbook Managerial economics andnbsp;business strategy (9/E): Part 2
lexity of oligopoly, there is no single model that is relevant for all oligopolies.oligopolyA market structure in which there ore only a few firms, eawww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2, consider a situation where several firms selling differentiated products compete in an oligopoly. In determining what price to charge, the manager must consider the impact of his or her decisions on other firms in the industry. For example, if the price for the product is lowered, will other firms Ebook Managerial economics andnbsp;business strategy (9/E): Part 2 lower their prices or maintain their existing prices? If the price is increased, will other firms do likewise or maintain their current prices? The oEbook Managerial economics andnbsp;business strategy (9/E): Part 2
ptimal decision of whether to raise or lower price will depend on how the manager believes other managers will respond. If other firms lower their priwww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2suppose the firm initially is at point B in Figure 9-1. charging a price of po. Demand curve D\ is based on the assumption that rivals will match any pricewww.downloadslide.netCHAPTER Ỡ Basic Oligopoly Models272Figure 9-1A Firm’s Demand Depends on Actions of Rivalschange, while D2 is based on the as Ebook Managerial economics andnbsp;business strategy (9/E): Part 2sumption that they will not match a price change. Note that demand is more inelastic when rivals match a price change than when they do not. The reasoEbook Managerial economics andnbsp;business strategy (9/E): Part 2
n for this is simple. For a given price reduction, a firm will sell more if rivals do not cut their prices (Di) than it will if they lower their pricewww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategic Ebook Managerial economics andnbsp;business strategy (9/E): Part 2rice increase, a firm will sell more when rivals also raise their prices (Dị) than it will when they maintain their existing prices (Di).DEMONSTRATION PROBLEM45170Suppose the manager is at point B in Figure 9-1. charging a price of /’o If the manager believes rivals will not match price reductions b Ebook Managerial economics andnbsp;business strategy (9/E): Part 2ut will match price increases, what docs the demand for the firm’s product look like?ANSWER:www.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategicwww.downloadslide.netBasic Oligopoly ModelsLEARNING OBJECTIVESAfter completing this chapter, you will be able to:LO1 Explain how beliefs and strategicGọi ngay
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