Learning objectives
Compare perfect competition, monopolistic competition, oligopoly, monopoly and natural monopoly by numbers of buyers and sellers, product differentiation, freedom of entry and information, and calculate a concentration ratio
Explain legal, market, cost and physical barriers to entry and exit
Analyse short-run and long-run price, output and profit in each structure, including the shutdown price and the supply curve of a perfectly competitive firm
Compare the productive, allocative and dynamic efficiency of different structures and explain X-inefficiency
Explain price rigidity in oligopoly with the kinked demand curve, and distinguish price from non-price competition
Explain the features of contestable markets and what they imply for the behaviour of incumbent firms
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