Economics (McConnell), AP* Edition, 20th EditionChapter 13:
Monopolistic Competition and Oligopoly (+ Appendix) After studying this chapter, you should be able to: LO 13.1 | List the characteristics of monopolistic competition. | LO 13.2 | Explain why monopolistic competitors earn only a normal profit in the long run. | LO 13.3 | Explain why monopolistic competition delivers neither productive nor allocative efficiency. | LO 13.4 | Relate how the ability of monopolistic competition to deliver product differentiation helps to compensate for its failure to deliver economic efficiency. | LO 13.5 | Describe the characteristics of oligopoly. | LO 13.6 | Discuss how game theory relates to oligopoly. | LO 13.7 | Explain the three main models of oligopoly pricing and output: kinked-demand theory, collusive pricing, and price leadership. | LO 13.8 | Contrast the potential positive and negative effects of advertising. | LO 13.9 | Discuss the efficiency of oligopoly from society's standpoint and whether it is more or less efficient than monopoly. | LO 13.10 | (Appendix) Utilize additional game-theory terminology and applications. |
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