economic

Week 4 key Topics Covered

Topic 4

Big question: How do business strategy, pricing, profits, and business growth interact?

Part A:

• market structure • market power • firm conditions and behaviour under Perfect Competition and Monopoly • Contestable markets • Natural monopoly

Part B:

• Oligopoly • business strategy • pricing strategies (profit-maximising pricing based on market demand; third degree

price discrimination; and predatory Pricing)

Required readings: Sloman et al, 8th edition (2019)

— Chapter 11 (including Box 11.1); — Chapter 12 (Read Section 12.2 (up to & including collusive Oligopoly (up to non-collusive

oligopoly, page 210); and including Box 12.2)