Reading Guide

Reading Guide for Unit 10: Monopolistic Competition

Chapter and sections in Taylor to Read

Pg #


12 Monopolistic Competition and Oligopoly 229
Monopolistic Competition 230 Read – Important. Pay particular attention to Exhibits 12-1 and 12-2
  Differentiated Products 230
Perceived Demand for a Monopolistic Competitor 231
How a Monopolistic Competitor Chooses Price and Quantity 232
Monopolistic Competitors and Entry 234
Monopolistic Competition and Efficiency 235
The Benefits of Variety and Product Differentiation 236
Oligopoly 237 Skip for now. We will cover it in the next unit.
Why Do Oligopolies Exist? 237
Collusion or Competition? 238
The Prisoner’s Dilemma 238
The Oligopoly Version of the Prisoner’s Dilemma 239
How to Enforce Cooperation 240
Trade-offs of Imperfect Competition 242 Read.
Key Concepts and Summary 242
Review Questions 244 optional