Joint output is greater than the monopoly quantity but less than the competitive industry quantity. Market prices are lower than monopoly price but greater than competitive price. Total profits are less than the monopoly profit.
Q uantity 0 10 20 30 40 50 60 70 80 90
100 110 120
P ric e $120 110 100
90 80 70 60 50 40 30 20 10 0
Total Revenue
$0
1,100
2,000Leabharlann 2,7003,200
3,500
3,600
3,500
3,200
1,Few sellers offering similar or identical products
2,Interdependent firms 3,Best off cooperating and acting like a
monopolist by producing a small quantity of output and charging a price above marginal cost
$0
1,100
2,000
2,700
3,200
3,500
3,600
3,500
3,200
2,700
2,000
1,100
0
10
Summary of Equilibrium for an Oligopoly