Market Structure

PERFECT COMPETITION
1. Many firms or sellers
  1. likely to be small
2. Freedom of entry and exit (Low costs)
3. Identical or homogeneous product
  1. often large scale production
4. Demand curve elastic
5. Firms have no market power
6. Normal profit
7. Limited or none influence over price
8. Competitive Market: a market with a number of firms that compete with each other.
9. Examples: Agricultural markets
MONOPOLY
1. Complete market power
2. Single seller or firm
  1. likely to be big
3. Unique product
4. High barriers for entry and exit (High costs and copyrights)
5. Supernormal profit
6. High influence over price
7. A market with a single supplier
8. Examples: Google or Railways
Definition: the conditions which exist in a market including the number of firms.
Most markets are in the middle of these 2 types
1. Monopolistic competition
  1. nearer to competitive markets
2. Oligopoly
  1. nearer to monopolies

Zusammenfassung der Ressource

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