TYPES OF MARKET:

IMPERFECT TYPE

MONOPOLISTIC COMPETITION
OLIGOPOLY
MONOPOLISTIC COMPETITION

-is a market situation where there is relatively

large number of small producers
and suppliers selling similar but not identical
products.
 CHARACTERISTICS OF
MONOPOLISTIC COMPETITION
1.) There is a large number of sellers
independently.
2.) Products are differentiated.
3.) There is a limited control of price.
4.)Entry of new firms in the market is
relatively easy.
5.)There is an aggressive non-price
competition in product quality, credit
terms, services, locations,and
physical appearance of the product.
OLIGOPOLY

- Is a market situation where there are few

firms offering standardized or differentiated
goods and services; that includes a wider
range of market structures.
1.)Government Laws and
policies.
2.)Technology
3.)Business policies and
practices.
4.) Economic freedom
CHARACTERISTICS OF OLIGOPOLY

1.) There are very few firms which dominate the

market.
2.)Products are identical or differentiated.
3.)There are price agreement among the producers to
promote. Their own economic interests.
4.) The entry of new competitors in the market is
difficult.
5.)There is strong advertising among those who
produce differentiated products like cars, cigarettes
and appliances.
DETERMINANTS OF
MARKET
STRUCTURE
PRICE AND OUTPUT
DETERMIINATION
Pure Competition

The demand curve of an individual firm under a

purely competitive industry is perfectly elastic.
However , in the case of market demand curve
(demand curve of all producers of a particular
product),it is inelastic.
Less minimization of a competitive firm in
a short-run is indicated by an average
cost higher than price or MR. This
means the firm is losing. To minimize
loss,the firm should produce an output
where price = MC (or MR=MC)
REPORTERS:

DELARITA, ESTELLA M.
BANDAJON, MERREIL I.
VERANO, FRAEZY M.
LUMAPGUID, RYLYN M.