Ch 3 · Market Structures

5 concept points · 4 formulas · 4 exam-critical points.

📘 Core concepts

• 1Perfect Competition: many sellers, homogeneous product, free entry, price takers.
• 2Monopoly: single seller, no close substitute, high barriers, price maker.
• 3Monopolistic competition: many sellers, differentiated product, easy entry.
• 4Oligopoly: few sellers, interdependent decisions, price rigidity (kinked demand).
• 5Equilibrium condition for firm: MR = MC.