Lecture
This lecture delves into the concept of imperfect competition, focusing on cartels and oligopoly. It covers topics such as the marginal cost of cartels, the kinked demand curve, and the implications of the Bowley duopoly. The lecture explores the dynamics of oligopoly markets, the role of interdependence between firms, and the potential outcomes of duopoly agreements. It also discusses the pricing strategies in markets with price leadership and the graphical representation of optimal outcomes in cartel scenarios.