What you'll learn
How the level of competition affects markets.
Key ideas
- Perfect competition (many firms) vs monopoly (one dominant seller) vs oligopoly (a few firms).
- Barriers to entry and non-price competition.
- Monopolies may charge higher prices, so are often regulated.
Exam tips
- Link competition to prices and choice.
- Evaluate the pros and cons of monopoly.
Common mistakes
- Confusing oligopoly with monopoly.
- Ignoring the role of regulation.