Q.
a) Define the following market structures and illustrate the equilibrium position of a firm or industry in the short-run and in the long-run.
i) Perfect Competition (8 marks)
ii) Monopoly (8 marks)
b) What is meant by the 'kinked' demand curve of an oligopoly market? (4 marks)
(20 marks, 2011 Q3)
A.
a)
i) Perfect Competition.
ii) Monopoly.
b)
'Kinked' demand curve of an oligopoly.