Socially efficient - Sociallyefficient Sociallyefficient>...

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Socially efficient Socially efficient-> maximizing total surplus Efficient allocations P=MC <- perfect competition all the time P>MC <- people are paying more than the resources that going into the  production of this  Efficiency in production-> W(L)=VMPL     W(K)=VMPK Long run P=MC=minATC Recap Market Structure Find profit maximizing quantity MR=MC Find price for q*-> demand curve and perfect ramp P=MC, other structure  P>MC Profits/loses-> SR/LR Efficiency-> compare to perfect comp Oligopoly/ Game Theory Characteristics of the oligopoly Few large firms, identical or differentiated products  and strategic  interactions  Game Theory Static games -> payoff matrix Nash  equilibrium and how to find it  Cournot Duopoly  Two firms  Quantity competition/decisions  Intuition-> cartel= cooperate and act as a monopoly  Cheating
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Socially efficient - Sociallyefficient Sociallyefficient>...

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