Description 
Marge is frustrated by the new emu 
burger restaurant that has opened 
across the street from Ostrich Burger. 
Marge is forced to cut her prices and, 
as a result, her profits are shrinking. 
She realizes that it is illegal to agree with 
Maggie, owner of Emu Burger, to set 
prices, so she drives to Mort's Ostrich 
Farm to see if he has something new she 
can sell.  Mort offers to sell her 
Megabirds--half the fat and twice the 
nutrition of regular ostrich meat. 
 
Oligopoly and Monopolistic Competition
Story

Audio Transcript 

Marge: It sure is harder to make a buck since that Maggie Maguillicutty moved in her new Emu Burger restaurant across the street. 

Marge: She copies my every move. I'm the one who started the half-price specials. 

Marge: Anything I do, Maggie does! I sold O-burgers for years at $3 each. Then in comes Emu Burger, disturbin' the peace. My loyal customers deserted me.  They had to try the new burgers. And besides, they were cheaper. 

Marge: I had no choice but to cut my prices. Who says you can't buy back your customers?! That brought most of 'em back, but I couldn't rest easy, 'cause Maggie came right back and lowered prices even further. And she started makin' all kinds of crazy claims! 

Marge: I had to fight back with lower prices and some claims of my own! 

Marge: But these lower prices started killin' my profits. I just don’t know what my next move should be! If only the two of us could get together and just agree to set prices higher. We'd both be better off! 

Marge: Hmm…But that would be illegal. I think it's time to visit old Mort, to see if I can get a jump on the competition... 

Mort: Well, I'll be a… 

Marge: Howdy Mort, how're ya doin'? 

Mort: Just fine, Marge, I was just thinkin' about ya - how's old O Burger treatin' ya.. 

Marge: That's why I'm here Mort. I really need a boost - something special that Emu burger doesn't have. 

Mort: I've got just what you need Marge. These new Megabirds have the finest meat in the world - twice the nutrition and half the fat of normal ostriches. 

Mort: And no one else knows just how I do it. I'm the only one with birds like these. 

Marge: Sounds great Mort, but birds like that must cost a pretty penny. 

Mort: Well, now that I’ve got a special ostrich, I’m not stuck charging the same price as all the other farmers.  I can charge more! 

Mort: But I could definitely cut you a deal on the price, Marge, you’re one of my best customers. You know, we belong together--you, me, O Burger and the Megabirds--we could make beautiful music together! 

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