12 - 8 Copyright McGraw-Hill/Irwin, 2005 Monopolistic Competition Characteristics Price and Output in Monopolistic Competition Monopolistic Competition and Efficiency Oligopoly Oligopolies and Mergers Three Oligopoly Models Kinked-Demand Theory Cartels and Collusion Price Leadership Oligopoly and Efficiency Key Terms Previous Slide Next Slide End Show Short-Run Economic Losses D MR MC P2P2 ATC Price and Costs Q2Q2 PRICE AND OUTPUT IN MONOPOLISTIC COMPETITION Quantity A2A2 With economic losses, firms will exit the market – stability occurs when economic profits are zero.
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