Unit 4: Imperfect Competition

PureChem is the sole manufacturer of a specialty industrial solvent with no close substitutes. The table below shows PureChem's demand schedule and total costs.

Bella's Bakery operates in a monopolistically competitive market for artisan bread. Bella's differentiates its product through unique sourdough recipes and has built a loyal customer base. Currently, Bella's is earning short-run economic profits beca

Two technology companies, AlphaNet and BetaCom, each must independently decide whether to invest in 5G infrastructure or maintain their current 4G networks. The payoff matrix below shows each firm's annual profit in millions of dollars. The first num

MovieMax is the only cinema in a small town, making it a monopoly. Currently, MovieMax charges all customers a single admission price of [math]8 and adults $15.

AquaPure is the sole provider of treated water in a city. Due to the enormous fixed costs of building water treatment plants and pipeline networks, AquaPure is a natural monopoly. The city's public utility commission is evaluating two regulatory pric

Three identical oil-producing countries — Aravia, Betrol, and Crudon — form a cartel and agree to restrict each country's output to 2 million barrels per day. At the cartel's agreed output level, the market price is [math]40 per barrel. If any single