AP Economics – 11/29/18

I.  Bellwork

  • Pages 657 #2 2a, b, & c

II.  Objectives:

  • Discuss the legal constraints of antitrust policy
  • Explain how repeated interactions among oligopolists can result in collusion in the absence of any formal agreement
  • Explain the cause and effect of price wars, product differentiation, price leadership, and nonprice competition
  • Describe the importance of oligopoly in the real world

III.  Oligopolies in Practice Pages 658-666

A.  The History of Anti-Trust Laws

B.  Tacit Collusion and Price Wars

  1. Large Numbers
  2. Complex Products and Pricing Schemes
  3. Differences in Interests
  4. Bargaining Power of Buyers

C. Nonprice Competition and Price Leadership

  • product differentiation
  • advertising
  • branding

IV.  Classwork:  Page 665

A.  Check Your Understanding 1a-e

B.  On iLearn:  Module 66 Oligopoly in Practice


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