Imagine a firm in monopolistic competition. A firm in monopolistic competition produces a product that you are familiar with, such as clothing and food.
Use the cost and revenue curves for your market with monopolistic competition to determine price, economic profit, and output.
Explain the decisions you will make to maximize profit.
Compare oligopoly (when there are only two firms) outcomes to the outcome in a true monopoly industry. What are the differences? What are the similarities?
How does applying game theory to decisions faced by oligopolists change profit in the long and short run?
Using game theory, analyze decisions and choices that oligopolists must make to ensure success.