Concentration ratios measure the proportion of the total market share controlled by a small number of firms.
Pricing strategies can often be destructive therefore firms in oligopoly prefer non-price competition. Kinked Demand CurveThe reaction of rivals to a price change depends on whether price is raised or lowered. Peter Shelley, Head of Economics and Politics, Royal Grammar School Newcastle upon Tyne discusses how firms in oligopolistic markets need to determine the nature of their competitive behaviour. When the order is placed at our website, credit card numbers are encrypted using 128 bit encryption.
Part 1 looks at price discrimination, collusion, cost-plus, predatory and limit pricing which are very popular in A2 micro exams. Part 2 examines four non-pricing strategies, all of which are very often relevant and applicable in A2 exams.

For each strategy there is a definition and diagram where relevant, an explanation of the strategy, some evaluation points, and a note on when to apply the strategy.
The book concludes with a set of self-test question in the form of hypothetical case scenarios, providing the student with an opportunity to analyse and evaluate the strategies in context.Maziar Homayounnejad is an experienced teacher. Enables structure if one firm carries out this pricing strategy then this inevitably leads to tacit collusion. The elasticity of demand, and hence the gradient of the demand curve, will be also be different. It also looks at penetration pricing, loss-leader pricing and product bundling which are less popular with examiners but can be usefully applied in some case studies.
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