MBAE-103: Managerial Economics – Unit 10

MBAE-103: Managerial Economics – Unit 10

Objectives: describe the concept of the pricing decisions under monopolistic competition in short run as well as long run; explain the concept of product differentiation with special reference to monopolistic competition; differentiate between monopolistic competition and oligopoly; and apply models of oligopoly behaviour to real world situations.

Materials:
The relevant material is available here.

Questions:

1. Distinguish between perfect competition and imperfect competition, giving examples.
2. Take the case of a monopolistically competitive firm and describe the steps involved in attaining long-run equilibrium for the firm.
3. Explain whether the firms producing differentiated products are more likely to face price competition than the oligopolists producing homogeneous products.
4. Write short notes on:
   Dominant price leadership
   Barometric price leadership