Ch 3 · Market Structures

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

⭐ Important points (exam-critical)

• ⭐Long-run profit: only normal profit in perfect & monopolistic competition.
• ⭐Price discrimination requires market segmentation and no resale.
• ⭐Cartels in oligopoly tend to be unstable (incentive to cheat).
• ⭐Kinked demand curve (Sweezy) explains price rigidity in oligopoly.