Market Structures

Monopoly
1. Single producer in market - 1 business has 100% of market share (pure monopoly).
2. Likely to erect barriers - prevent others from entering market.
3. They are price makers - have significant influence on price.
4. Any business with over 25% of market share is classed as a monopoly.
Oligopoly
1. Many businesses but only few dominate market.
2. Tend to have differentiated products - with strong brand identity.
3. Brand loyalty encouraged but advertising and promotion.
4. Prices normally stable - short price wars occur.
5. Some entry barriers - high start-up costs etc.
Monopolistic Competition
1. Large number of relatively small businesses.
2. Few barriers of entry.
3. Products are similar - different from each other.
4. Brand identity is relatively weak.
5. Not price takers - only have limited degree of control over prices.
Perfect Competition
1. Large number of businesses - no 1 business is big enough to influence other businesses.
2. They are price takers - due to no market/price leaders.
3. Goods sold are homogenous - no difference between goods from businesses.
4. Businesses have equal access to technology.
5. Consumers have full market information.

Resource summary

	Created by dhruv bechra almost 7 years ago