Today we will study the behavior of businesses in industries where there are only a few firms that cooperate to capture monopoly profits. An industry with these characteristics is called a collusive oligopoly. You should read the text chapter identified below in the homework section, watch the related videos for help in understanding this material, do the activities identified, in the homework section and be prepared for the Problem of the Day. This page contains all the information you need for today's class. Use the table of contents on the right to help you navigate.
Read Mankiw (Chapter 17).
Watch these videos.
Khan Academy
AC/DC Economics: Once you think you understand these ideas, watch this video to test your knowledge.
Problem of the Day: You will work cooperatively with your partner to construct a response to the following prompt.
"Consumers are better off when industries are monopolistically competitive than when they are pure monopolies or perfectly competitive." Evaluate this statement.
Lecture
Ted Talks
Related Readings