Economics

Paper from my economics class

Characteristics of the Various Market Structures

Economics

Monica Carter

Principle of Economics (ECO 2071/SO2)

Mr. Joseph Brandt

08/01/2015

Market Structures:

Perfect Competition is a market in which there are many firm sellers identical products with no firms large enough, relative to the entire market, to be able to influence market price.

o Large number of buyers and sellers

o No product differentiation

o Low barrier to entry and exit

o Perfect and equal information

o No price restriction and no collusion

Monopolistic Competition is a market structure in which several or many sellers each produce similar, but slightly differentiated products.

o Many buyers and sellers

o Sellers offer a differentiated product

o Sellers can easily enter and exit the market

Oligopoly is the market condition that exists when there are few sellers, as a result of which can greatly influence price and other market factors.

o A few large firms

o Standardized or differentiated products

o Significant barriers to entry

o Market power—Interdependent

Monopoly is a market structure in which thee is only one producer/seller for a product.

o Restricting out onto he market

o Charging a higher price than in a more competitive market

o Restricting choice for consumers.

In my table I will describe the various characteristics a little bit more so you can see how they all work.

| |Perfect Competition |Monopolistic Competition|Oligopoly |Monopoly |

|Number of firms |Lots |Many, large number of |Few |One |

| | |firms | | |

|Pricing Decision |Determined by market...