* It is defined as that form of

organized exchange in which

make purchases and sales of goods and
services by contacting
demanders and bidders.
Depending on the number of bidders and
demanders or type of product, the
markets adopt various formats
which we call...
MARKET STRUCTURES
According to the number of bidders and demanders
Offer Many buyers
only one
Demand buyer

BILATERAL
only one seller MONOPOLY
MONOPOLY

Many sellers MONOPSONY PERFECT COMPETITION

 MARKET TYPES

• Perfect Competition Market

• Imperfect Competition Market

It's a
market…
* NORMAL: Many producers and demanders, the price is formed by everyone's
actions. Furthermore, this implies that the individual decision of each of them
will have little influence on the global market.
* PERFECT: The good offered by each producer is identical (homogeneous
product) * TRANSPARENT: All participants have full knowledge of the general
conditions under which the market operates
* FREE: Companies will be able to enter and exit the market immediately
whenever they wish.
 Although the competitive equilibrium
price is the same for all companies, the
profits are not.
The facilities, machinery and organization and
management of companies are not the same, so
Costs and benefits are also different.

Over time, companies that

obtain lower profits they will do one of two
things:
 ■ Readapt your ■ Liquidate your
Productive processes facilities and leave
to increase your to another sector
benefits. profitable.
 It is a market in which some of the
participants have the ability to influence,
individual title, in the price of the product
Some factors that produce imperfections in
the marking are:
A Barriers to entry
A Increase in
To Agreements for investment for
eliminate the reduce costs
competence
A Crisis
economic

Within imperfect competition and in

depending on the number of participants and the
product differentiation can be
establish the following basic types of
market:
TO MONOPSONY

TO COMPETITION
MONOPOLY
TO MONOPOLY
TO OLIGOPOLY
There is only one buyer. This allows you
determine the price, the lowest
possible, and the quantity to buy.
Monopsony generally occurs with
regarding certain factors of production - such as
for example the demand for a certain type of work
specialized- or with raw materials and goods in
process ; there is a monopsony of consumer goods
Furthermore, it can occur in some special cases:
A country's military may be the only buyer of
certain type of equipment or weaponry, or certain
distributors or wholesalers may be the only ones
demanders for certain types of goods that then
AE-AeAw —I wIIIeA

Monopsony, like monopoly, is

a situation theoretically opposite to that of
perfect competition.
In practice, except in some cases
individuals, monopsonies are only
 present in local markets relatively
reduced or in circumstances where there is a
decisive government intervention.
There is also a close relationship between the
monopoly and monopsony situations: a
monopoly company will easily become
the sole buyer of certain factors
productive, especially raw materials,
semi-finished products and other inputs.

It exists when many people go to the market.

producers and many consumers, but
difference from the perfectly competitive market in
that companies resort to differentiation
 your products to improve your position
When perceived as the company's product
as different from the rest on the part of the
consumers, it manages to achieve the advantages
of monopoly
However, the existence of many
close substitutes significantly limits
the "monopoly" power of sellers and gives
as a result a very
Wed".

MONOPOLY

Neighborhood Stores
They generally offer the same goods as
other stores, but they differ from each other
 being located in different places and
offer different attention.
Other markets that have the attributes of
monopolistic competition are:
The market for books, CDs, movies,
computer games, restaurants,
cookies, furniture, etc.

There is only one bidder who has full capacity to

determine the price It may originate or the quantity
offered) in:
$ The granting of a patent for the manufacture of a good (temporary monopoly).
$ The control of a productive factor by a company, for example, raw materials.
$ State control of an economic sector or resource that is granted in concession
to the private sector.

$ The existence of a single company that is in the most favorable conditions to

produce the good.

There is a small number of

buyers who exercise their control.
Each of the producers holds a certain power
within the market and can act with policies of
prices or with variations in the quantities offered.
The product is slightly differentiated and exists
competitive advertising that seeks to
consumers change brands.
There is no price war, unless the price is reduced.
market size due to a decrease in power
purchasing power or that any of the participants
undertake an aggressive policy to conquer the
portion of the market that is under the control of
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