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Market Structures
Summary
- •Industries classified by competition, pricing power, and barriers to entry.
- •Perfect competition: zero long-run profit, optimal efficiency.
- •Monopolies maximize profit via restricted output and higher prices.
- •Oligopolies: interdependent pricing and strategic behavior between a few large firms.
- •Monopolistic competition blends differentiation with low barriers to entry.
- •Market failure arises from externalities, public goods, and information gaps.
- •Policy levers: antitrust enforcement, taxes, subsidies, and targeted regulation.
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