Chapter Outline
12.1 Productive and Allocative Efficiency
12.2 Economic Regulation to Promote Efficiency
12.3 Canadian Competition PolicyAFTER STUDYING THIS CHAPTER YOU WILL BE ABLE TO
In the previous three chapters we examined various market structures,
from perfect competition at one end of the spectrum to monopoly at the
other end. In the middle were two forms of imperfect competition:
Learning Objectives (LO)
1. distinguish between productive efficiency and allocative
efficiency.
2. explain why perfect competition is allocatively efficient, whereas
monopoly is allocatively inefficient.
3. describe alternative methods for regulating a natural monopoly.
4. discuss some details about Canadian competition policy.