I owe it to u!! I had missed so much class n had no reading material but I had one of the best exams taken today!! Ur video was soooooo helpful!! Thank you so much!!
Shaan....firms have price making power in the oligopoly only if they do various forms of collusion so as to charge high prices on consumers but in the case that they are competing the firm can not both increase or decrese the price because if it increase it will loose its market share since there is elastic dd curve above equilibrium price but if it decrease its price bcoz there is inelastic dd curve below equilibrium price it wont be neccessary coz there will not be greater change in the mrket size
***** I have a question, when you said there was product differentiation you also said that firms do have price making power but then when you explained how firms shouldnt raise or lower prices I got a bit confused please explain :)
My understanding is that the idea is that in the oligopoly, firms have the power to change their price, however if they divert away from P1 as in the video then it means that they will either lose their market share by raising their price due to the other firms not following, or all firms will lose total revenue by a fall in the price as each firm would follow which could potentially lead to a price war which is detrimental for all of the firms in the oligopolistic structure. As it is not sensible to try to compete on price, firms therefore try to differentiate their product or give out promotions in order to try and make themselves seem more attractive as they are attract customers by changing the price. I hope this helps :)
musa ali I think won't. Since the price and quantity would be the same, the total revenue doesn't change as well as the total cost. Thus the profit is constant.
AC is almost never shown on an oligopoly diagram. It is possible to show AC on an oligopoly diagram but when adding multiple MC curves to show that firms will likely produce at one level of output, it can be messy. This is because when MC changes, AC would change so it continues to cut at the bottom. (So if two MC curves are drawn, two AC curves would also need to be drawn) Not really as much point to show it compared to other market structures as well : Q are normally 'explain interdependence and price rigidity' or about collusion, not show abnormal profit on the diagram :)
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without you, I would've failed economics. My teacher is so bad
What you get?
Man thank you you are the sole reason I have an 86 percent in microeconomics this year
I have been teaching Economics for the past 10 years. And I love the way you explain concepts .
Thank you so much! I hope it feels fantastic helping tens of thousands of people with their academic performance😊
Best video on this topic. i am definitely a follower now.
Wonderful! Thank you! Your video saved me a lot of time for finals.
This guy is really good at explaining!!!
Thanks
Smashed exam thanks to this, thanks !!!
I owe it to u!! I had missed so much class n had no reading material but I had one of the best exams taken today!! Ur video was soooooo helpful!! Thank you so much!!
Thanks this will be very helpful for my economics exam paper I'm writing tomorrow
Very well made. Good Job Dal!!!! Im proud of you :)
What happens then when MC rises above the vertical line? They would have to change their prices?
Would you be able to do a video on COBA and CBA I don't understand it? Please!
great videos ! ultra useful ! Thanks :)
Great work man, thanks for making this papa bless
You are the real MVP here
Really helpful l!!! Fantastic
This was excellent!
Great videos keep it up
Best tutor
great video!
Thank you so much, very helpful video.
These are so helpful!
I love you bro. You are the best!
thank you for doing this!!!
is there any condition when kinked demand curve will disappear
Thanks, this was really helpful!
is the kinked - demand curve use in the context of oligopoly collusion or is it used whenever the exam asks just about a oligopoly?
nicely explained....thanx
Shaan....firms have price making power in the oligopoly only if they do various forms of collusion so as to charge high prices on consumers but in the case that they are competing the firm can not both increase or decrese the price because if it increase it will loose its market share since there is elastic dd curve above equilibrium price but if it decrease its price bcoz there is inelastic dd curve below equilibrium price it wont be neccessary coz there will not be greater change in the mrket size
***** I have a question, when you said there was product differentiation you also said that firms do have price making power but then when you explained how firms shouldnt raise or lower prices I got a bit confused please explain :)
My understanding is that the idea is that in the oligopoly, firms have the power to change their price, however if they divert away from P1 as in the video then it means that they will either lose their market share by raising their price due to the other firms not following, or all firms will lose total revenue by a fall in the price as each firm would follow which could potentially lead to a price war which is detrimental for all of the firms in the oligopolistic structure. As it is not sensible to try to compete on price, firms therefore try to differentiate their product or give out promotions in order to try and make themselves seem more attractive as they are attract customers by changing the price. I hope this helps :)
Nish Patel Thanks Nish, great explanation
can you please give me a link to the video on why mr curve is straight as mentioned by you in this video. I can't find it. its urgent
th-cam.com/video/8RK7aV5tAwk/w-d-xo.html
Here
this nigga shouting urgent and you responding 1 year 11 months late
Quasi I'M GONE
The plug
Thank you sir 🙏
please can someone elaborate on why theres a vertical section on the kinked demand curve, im still not too sure
Lucy Tong Hi Lucy, hopefully this video helps you out th-cam.com/video/8RK7aV5tAwk/w-d-xo.html
thank you so much! your videos are so helpful :)
Plz give a lecture on models of oligopoly plz ....
you're amazing
Brilliant thanks
Hi, I was just wondering if a firm lowers its mc within the diccontinuity, does it see an increase in profits ?
musa ali I think won't. Since the price and quantity would be the same, the total revenue doesn't change as well as the total cost. Thus the profit is constant.
It does
true hero
thank you :)
Move from Bromsgrove and come to Oakham!!!
i wonder if these were really helpful for a-level....
who else is watching this on the night before their microeconomics exam?
🙌
thanks I got the video from Lucy tong's comment below
I was just wondering, why was the AC curve not included within the graph?
AC is almost never shown on an oligopoly diagram. It is possible to show AC on an oligopoly diagram but when adding multiple MC curves to show that firms will likely produce at one level of output, it can be messy. This is because when MC changes, AC would change so it continues to cut at the bottom. (So if two MC curves are drawn, two AC curves would also need to be drawn)
Not really as much point to show it compared to other market structures as well : Q are normally 'explain interdependence and price rigidity' or about collusion, not show abnormal profit on the diagram :)
Oh OK that makes sense, thanks.
what a lad
i have A
Thanks