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Edu Level: Unit1
Characteristics
| Characteristics | Perfect Competition | Monopoly | Monopolistic Competition | Oligopoly |
|---|---|---|---|---|
| Type of Good | Homogenous/Identical | Unique | Differentiated | Idental OR Differentiated |
| Number of Buyers | Many | Many | Many | Many |
| Number of Sellers | Many | One | Many | Few Large Firms |
| Entry & Exit | Freedom of Entry & Exit | Entry is Restricted | Freedom of Entry & Exit | Entry is Restricted |
| Knowledge of Market | Perfect Knwoledge | Imperfect Knowledge | Perfect Knwoledge | Perfect Knwoledge |
Conduct
| Characteristics | Perfect Competition | Monopoly | Monopolistic Competition | Oligopoly |
|---|---|---|---|---|
| Non-Price Competition | No Non Price Competition | No Non Price Competition | Yes, Non Price Competition | Yes, Non Price Competition |
| Price Behavior | Price Taker | Price Setter | Price Setter | Price Setter |
| Output Determination | MC = MR | MC = MR | MC = MR | MC = MR |
Performance
| Characteristics | Perfect Competition | Monopoly | Monopolistic Competition | Oligopoly |
|---|---|---|---|---|
| Short Run Profits | Abnormal Profits | Abnormal Profits | Abnormal Profits | Abnormal Profits |
| Long Run Profits | Normal Profits | Abnormal Profits | Normal Profits | Abnormal Profits |
| Efficiency | Allocative & Productively Effieicent Both Short & Long Run |
Allocative(P>MC) & Productively(MC≠AC) Ineffieicent Both Short & Long Run |
Allocative(P>MC) & Productively(MC≠AC) Ineffieicent Both Short & Long Run |
Allocative(P>MC) & Productively(MC≠AC) Ineffieicent Both Short & Long Run |
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