Unit 3: Are Businesses Efficient? Product Markets and Efficiency

Lesson 11b: Oligopoly: Are Businesses Efficient?

Key Problems

Oligopoly: The Kinked Demand Model

Oligopoly - Long Run Equilibrium and Efficiency

Oligopoly - Long Run Equilibrium and Efficiency

Explain why Oligopolies earn zero economic profits in the long run

Draw the long run equilibrium graph for Oligopolies

Discuss the efficiency of Oligopolies in the long run and show on the graph.

- allocative efficiency

- productive efficiency

 

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Lesson 11b