Scribd
Upload
22 views5 pages

Market Structure

The document outlines four types of market structures identified by economists: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition features many firms selling identical products with no entry restrictions, while monopolistic competition involves many firms with differentiated products. Oligopoly consists of a few firms with barriers to entry, and monopoly is characterized by a single firm producing the entire output with no close substitutes.

Uploaded by

muhamed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
22 views5 pages

Market Structure

The document outlines four types of market structures identified by economists: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition features many firms selling identical products with no entry restrictions, while monopolistic competition involves many firms with differentiated products. Oligopoly consists of a few firms with barriers to entry, and monopoly is characterized by a single firm producing the entire output with no close substitutes.

Uploaded by

muhamed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 5

Markets and the

Competitive Environment
Economists identify four market types:
1. Perfect competition
2. Monopolistic competition
3. Oligopoly
4. Monopoly

© 2019 Pearson Education Ltd.


Markets and the
Competitive Environment
Perfect competition is a market structure with
 Many firms and many buyers
 All firms sell an identical product
 No restrictions on entry of new
firms to the industry
 Both firms and buyers are all well
informed about the prices and
products of all firms in the industry.
Examples include world markets
in wheat, corn, and other grains.

© 2019 Pearson Education Ltd.


Markets and the
Competitive Environment
Monopolistic competition is a market structure with
 Many firms
 Each firm produces similar but
slightly different products—called
product differentiation
 Each firm possesses an
element of market power
 No restrictions on entry of
new firms to the industry

© 2019 Pearson Education Ltd.


Markets and the
Competitive Environment
Oligopoly is a market structure in which
 A small number of firms compete.
 The firms might produce almost
identical products or differentiated
products.
 Barriers to entry limit entry into the
market.

© 2019 Pearson Education Ltd.


Markets and the
Competitive Environment
Monopoly is a market structure in which
 One firm produces the entire output of the industry.
 There are no close substitutes for the product.
 There are barriers to entry that protect the firm from
competition by entering firms.
 Monopolies can be local such
as gas and water suppliers or
global such as the wholesaler
of designer brand sunglasses.

© 2019 Pearson Education Ltd.

You might also like