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LONG-RUN MARGINAL COST CURVE: A graphical representation of the relationship between long-run marginal cost and the quantity of output produced. Like other marginal curves, the long-run marginal cost curve follows the average-marginal rule relative to the long-run average cost curve. In all outward appearance, the long-run marginal cost curve looks very much like the short-run marginal cost, that is, it is U-shaped. However, the U-shape is attributable to returns to scale rather than increasing and decreasing marginal returns.
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Lesson 20: Oligopoly | Unit 4: Analysis
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Page: 20 of 24
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In this unit, you should have learned about:- How the kinked-demand curve, derived for an oligopoly operating in an interdependent market, has a more elastic segment for price increases, and a less elastic segment for price decreases.
- The kinked-demand curve analysis, which illustrates how oligopoly prices tend to be relatively rigid because competing firms DON'T match higher prices but DO match lower prices.
- How colluding firms maximizing industry profit by equating industry marginal revenue to industry marginal cost.
- How the output of colluding firm is divided based on the marginal cost of production by each firm.
- Using game theory to illustrate the interdependent decision making among oligopoly firms, such as the decision to advertise.
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INTEREST RATES, AGGREGATE DEMAND DETERMINANT One of several specific aggregate demand determinants assumed constant when the aggregate demand curve is constructed, and that shifts the aggregate demand curve when it changes. An increase in interest rates cause a decrease (leftward shift) of the aggregate curve. A decrease in interest rates an increase (rightward shift) of the aggregate curve. Other notable aggregate demand determinants include the federal deficit, inflationary expectations, and the money supply.
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RED AGGRESSERINE
[What's This?]
Today, you are likely to spend a great deal of time looking for the new strip mall out on the highway wanting to buy either a how-to book on home remodeling or a tall storage cabinet with five shelves and a secure lock. Be on the lookout for the last item on a shelf.
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A communal society, a prime component of Karl Marx's communist philosophy, was advocated by the Greek philosophy Plato.
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"Old age isn't so bad when you consider the alternative. " -- Cato, Roman orator
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SNP
Seminonparametric
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