Outcome: Inefficiency in Oligopolies

What you’ll learn to do: explain why oligopolies are inefficient

In this section, you will come to see why oligopolies do not efficiently use all of the resources in the market. In an oligopoly, there is typically and underallocation of resources, making oligopolies both productively and allocatively inefficient.


The learning activities for this section include the following:

  • Reading: Tradeoffs of Imperfect Competition
  • Self Check: Inefficiency in Oligopolies

Take time to review and reflect on each of these activities in order to improve your performance on the assessment for this section.