Chapt 22 Monopoly, 23 Monopolistic Competiion & 24 Oligopoly

	Always operate in the short run, never make a profit in the long run.
	MC @ ATC
	The output, most Profitable
	Iindustry that has many firms selling a diffferentiated product.
	When a seller charges 2 or more prices for the same good or service.
	(Price - ATC) X Output
	TC / Ouput
	TR - TR
	Price X Output
	The output at which the firm would produce most efficiently.
	Demand line is above ATC curve.
	TC - TC
	Monopolist is the only firm
	Produce differentiated products. Make a profit or take a lost in the short run, in the long run the firm will break even. (MOST number of firms.)
	Produce all the output in an industry. No distinction in the long or short run.
	Produce identical products.
	An industry with just a few sellers.
	Inefficient, higher prices and a lower output, always make a profit, (MOST sales.)
	The HHI is the sum of the squares of the market shares (ex. 30% sq = 900%) of each firm in the industry.
	The total percentage share of industry sales of the 4 leading firms. Add the top 4 companies.
	A combination of firms that acts as if it were a monopoly. Most extreme case of oligopoly
	Operates like the alleged Mafia. Region division of the market among the firms in the industry.
	Involves price-fixing
	Playing follow the leader (One company raises prices and shortly after, the other companies in the same market do the same)
	Keeps the price just where it is to maximize profit.
	Mind of the consumer.
	Physical differences, Convenience Ambience,Reputations, Appeals to vanity, Unconscious fears and desires. Snob appeal, Customized products
	No imports -- tell us nothing about the competitive structure on the rest of the industry.
	A situation where one firm is able to provide a service at a lower cost than could several competing firms.
	Justify bigness because sometimes only a firm with the capability of very large output can produce anywhere close to the minimum point of its ATC