Monopolistic competition deals with markets that are basically competitive but have the extra twist of product differentiation, which makes each good slightly different from its substitutes. Oligopoly, often referred to as “monopoly of the few,” occurs when a small number of firms control a large enough share of the market that, if they were to band together, they could act like a monopoly. Finally, we discuss game theory and some applications of it.

Describe and explain the characteristics of the theories of monopolistic competition and why they exist.
Determine the optimal price and output decisions for firms under an oligopoly market structure.
Explain firms’ pricing behavior and the outcomes within game theory context.”

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