Understanding X-Inefficiency in Different Market Structures

The video lecture discusses X inefficiency, a concept where firms incur higher average costs due to lack of competition. It explores causes like patents, organizational slack, and poor management. Graphical illustrations show how costs rise without changing the average cost curve. The concept, introduced by Leibenstein in the 60s, is applied to various market structures, highlighting inefficiencies in monopolies and oligopolies. The lecture concludes with an assessment of market structures and their efficiency levels.

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