Micro 4.1 - Imperfectly Competitive Markets

This video covers topic 4.1 of the AP Microeconomics Course Exam Description (CED). This video is all about Imperfectly competitive markets. It exlplains how imperfect competition is different from perfect competition, how firm demand curves are different within each market, and why imperfectly competitive firms are not allocatively efficient.
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I would like to acknowlege the work of Dick Brunelle and Steven Reff from Reffonomics.com who’s work inspired many of the review games on ReviewEcon.com. I would also like to thank Francis McMann, James Chasey, and Steven Reff who taught me how to be an effective AP Economics teacher at AP summer institutes; as well as the countless high school teachers, and college professors from the AP readings, economics facebook groups, and #econtwitter.

[@fen17072010]

Omg. I was confused with imperfect competition. But after your video it makes all sense! Thank you so much

[@ReviewEcon]

Awesome! I'm glad it helped! Good luck on your exams!

[@Leleandstandordfp]

I have a test tomorrow this was so helpful thank you! :)

[@ReviewEcon]

You're very welcome! Good luck on your exams!

[@alimadi9053]

Thanks for the video, keep up the great work :)

[@ReviewEcon]

You're very welcome!

[@jayxo4012]

Amazing Content !

[@ReviewEcon]

Thank you!

[@ronniec9841]

Hi, about the last part about efficiency. Does this mean that imperfectly competitive firms always have dead weight loss since they're pricing up at the demand curve? Thank you!

[@ReviewEcon]

As long as the firm is profit maximizing (the assumption unless otherwise specified), they will sell at a price greater than marginal cost and have dead weight loss. So you are correct! They are not productively efficient.

[@ronniec9841]

@@ReviewEcon Thank you so much!

[@chris60256]

great video you are very good at explaining

[@ReviewEcon]

Thank you! Good luck on your exams!

[@WijthaGayan]

Why do firms operate at their efficient scale in the long run in a perfectly com- petitive market?

[@ReviewEcon]

Wrong video for this question, but productive effiency is where a firm produces at the minimum ATC and allocative efficiency is when producing when P=MC.

[@manhalalzakar8107]

thanks man

[@ReviewEcon]

You're welcome! 😄

[@user-rm2mg7ye7m]

Sir please is oligopsony,monopsony, oligopoly and duopoly Same with what you just explained??

[@ReviewEcon]

Oligopoly and duopoly apply to this video, but monopsony and oligopsony are not. I cover monopsony here as a factor market: kzbin.info/www/bejne/Zl6cd5Sco7GGmqMsi=g4jqRBfNVoB3IhpA Unfortunately, I do not cover oligopsony as it is not part of the AP micro exam (the focus of these content videos).