The Concepts of monopolistic competition and game theory


First: enter this in the link bar:
Then on the right hand side click for Ch. 11, it will automatically bring you to the module. , click on origin of idea

1.From the Chapter 11 “Origin of Idea,” identify those who gave us the concepts of “monopolistic competition” and “game theory”.

2.Take a look at the default picture in the Chapter 11 “Interactive Graphs” section and indicate if you think it represents along run equilibrium for a monopolistically competitive firm.  Explain why or why not?  If you get in trouble with the graphs, just click on the “Instructions” button. In the event the online graph is not view able, the graph in Figure 11.1 on page 220 is identical and can be used in lieu of the online graph.

3.What is the meaning of a four-firm concentration ratio?  Interpret what a four-firm concentration ratio of 60 % would mean.  Interpret what a score of 90% would mean for the four-firm concentration ratio. What are the shortcomings of concentration ratios as measures of monopoly or oligopoly power?  These concepts are discussed in the textbook reading for this week.

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