Principles of Microeconomics / Unit 7 MIC 0638 short lesson, about 20 seconds
Competition as the Benchmark
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The idea
Perfect competition is the benchmark the other structures are measured against. Monopoly, oligopoly and monopolistic competition each fail one or both efficiency tests, and the shortfall is measured from here.
In practice
Units eight and nine each begin by asking what changes when firms set prices.
Where people slip
A benchmark is not a recommendation; it is the yardstick the next units measure real markets against.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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