Economics (McConnell) AP Edition, 19th Edition

Chapter 11: Monopolistic Competition and Oligopoly (+ Appendix)

The content of this chapter may be included on the AP* Microeconomics exam.

After reading this chapter, you should be able to:

1. List the characteristics of monopolistic competition.
2. Explain why monopolistic competitors earn only a normal profit in the long run.
3. Describe the characteristics of oligopoly.
4. Discuss how game theory relates to oligopoly.
5. Relate why the demand curve of an oligopolist may be kinked.
6. Compare the incentives and obstacles to collusion among oligopolists.
7. Contrast the potential positive and negative effects of advertising.
8. (Appendix) Utilize additional game-theory terminology and applications.

AP Chapter 11 Introduction (9.0K)