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Market Structures - Economics
Market Structures - Economics
Monopoly:
Monopoly is a market structure characterized by a single seller, selling a unique
product in the market .In a monopoly market , the seller faces no competition as
he is the sole seller of goods with no close substitute.
Oligopoly:
Oligopoly is a market dominated by a small number of firms who realize they
are interdependent in their pricing and output policies
Monopolistic Competition:
Monopolistic competition characterizes an industry in which many firms offer
products or services that are similar (but not perfect) substitutes.
Perfect Competition:
Perfect competition in economics is when all companies sell identical products,
market share does not influence price, companies are able to enter or exit
without barrier, buyers have perfect or full information, and companies cannot
determine price.
Apphia M. Nicholi R. Jeremiah W. Rashad M. Kaleb E. Jeneya N.
Oligopoly;
Oligopolies may adopt a highly competitive strategy, in which case they
can generate similar benefits to more competitive market structures, such
as lower prices.
Even though there are a few firms, making the market uncompetitive,
their behaviour may be highly competitive.
Apphia M. Nicholi R. Jeremiah W. Rashad M. Kaleb E. Jeneya N.
Monopolistic Competition;
a few barriers to entry.
active business environment.
customers can obtain a great variety of products and services since they
are differentiated.
consumers are informed about goods and services available in the market.
higher quality of products.
Perfect Competition;
They can achieve the maximum consumer surplus and economic welfare.
All the perfect knowledge is available so there is no information failure.
Oligopoly;
limited customer choice:
The consumer won’t have as many choices when it comes to the product or
service they want.
high barriers to entry
If an entrepreneur wants to enter this market it will be a difficult process
because the company has already established its brand and accumulated its
consumers.
Monopolistic Competition;
impossibility to obtain abnormal profits:
Apphia M. Nicholi R. Jeremiah W. Rashad M. Kaleb E. Jeneya N.
Perfect Competition;
misleading advertising:
Due to a lot of competition you will find that some companies will use false
advertising to gain customers.
Alot counterfeit:
some entrepreneurs may proceed to counterfeit the product of successful brand
resulting in some consumer buying the fake goods thinking they got the original
product.
Examples Of Oligopoly:
1.Cell Service Companies (Digicel & Bmobile)
3.Airline Companies (Caribbean Airlines)