Ch+7.3

Ch 7.3 notes and questions __Monopolistic Competition__ __4 conditions of monopolist competition__ __Non price competition__ __Oligopoly__
 * many competition compete in open market to sell products that are similar but not identical
 * many firms, few article barriers to entry, slight control over price, differential product,
 * differentiation enables a monopolistically competitive seller to profit from the differences between his or her products and competitors product
 * non price competition is competition through ways other than lower prices
 * physical characteristics, location, service level, advertising image or status
 * oligopoly describes a market dominated by a few large, profitable firms
 * price war is when competitors cut their prices very low to win business
 * collusion refers to an agreement among members of an oligopoly to set prices and production levels
 * price fixing is an agreement among firms to sell at the same or very similar prices
 * cartel is an agreement by a formal organization of producers to coordinate prices and production

Questions #1-4,6
 * 1) the 4 conditions of monopolist competition are many firms, few article barriers to entry, slight control over price, differential product
 * 2) economist know when oligopoly occurs when their four largest firms produce at least 70 to 80% of the output
 * 3) 3 examples of non price competition are physical characteristics, location, advertisement
 * 4) would make labor cost go up so more production is done
 * 5) a.oligopoly b.oligopoly c. competition d. competition e. oligopoly
 * 1) a.oligopoly b.oligopoly c. competition d. competition e. oligopoly