market competition

market competition

1. Perfectly competitive market

   • What is it
     • It is that so many consumers, offers and brands interact, that none of them is capable of influencing the price of the products on their own. Competition is always the order of the day and goods and services are generally the same or similar.
       • features
         • • All companies sell an identical product. • All companies accept prices (they cannot influence the market price of their product). • Market share does not influence prices. • Buyers have complete or “perfect” information, past, present and future, about the product being sold and the prices charged by each company. • The resources for such work are perfectly mobile. • Companies can enter or leave the market at no cost.

2. Monopsony market

   • What is it
     • We speak in this case of markets in which consumers have a leading role. That is, after their business decisions, they are able to change, or at least influence, the price of products. Obviously, for this to be the case, demand must be much higher than supply. Customers, therefore, have a very high bargaining power in this model.
       • features
         • • Unique product • Large number of bidders, which generally do not change market conditions. • A single plaintiff or very few. • There are usually no restrictions on the entry of producers in this type of market.

3. Imperfect competition market

   • What is it
     • It is a situation in which individual sellers have the ability to significantly affect the market price of their products or services.
       • Monopoly
         • What is it
           • It is the market structure where there is a single supplier of a certain good or service, that is, a single company dominates the entire supply market.
       • Oligopoly
         • What is it
           • It is a market structure in which there are few relevant competitors and each of them has a certain capacity to influence the equilibrium price and quantity.
       • Monopsony
         • What is it
           • It is a market structure where there is a single demander or buyer.
       • Oligopsony
         • What is it
           • It is a type of market where there are few applicants, although there may be a large number of suppliers.
       • monopolistic competition
         • What is it
           • It is a type of imperfect competition in which there is a high number of sellers in the market who have a certain power to influence the price of their product.

4. Monopoly market

   • What is it
     • They are commercial spectrums in which a single brand is responsible for the sale of a product or service. This situation is basically explained by the high number of entry barriers that are imposed on companies that aspire to compete.
       • features
         • • Each company makes independent decisions about price and production, based on its product, its market and its production costs. • Knowledge is spread widely among participants, but is unlikely to be perfect • The entrepreneur has a more important role than in companies that are perfectly competitive due to the greater risks associated with decision making. • There is freedom to enter or exit the market, as there are no significant barriers to entry or exit.