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
- Large Numbers
- Complex Products and Pricing Schemes
- Differences in Interests
- 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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