MARKET STRUCTURE

What Are Markets? 2

A market is where buyers and

sellers:
• meet to exchange goods and
services.
• are affected by some level of
competition.
Markets are classified by 4 structures 3

1. Perfect Competition

2. Monopolistic Competition

3. Oligopoly

4. Monopoly
Perfect Competion
Agricultural Products 5
CORN
WHEAT
Price is determined by the
intersection of market demand
and market supply curves.
Demand Curve
Monopolistic Competition
Perfect Competition Compared to
Monopolistic Competition
Oligopoly
Monopoly
Demand and
Marginal Revenue
Perfect Competition and
Monopoly Compared
References
• Managerial Economics and Business Strategy 8th Edition
By: Michael R. Baye and Jeffrey T. Prince
• Managerial Economics 8th Edition
By: William F. Samuelson and Stephen G. Marks
• Economics – A Contemporary Introduction 11th Edition
By: William A. McEachern