Eco 561 Week 3 Learning Team Deliverable

ECO 561 WEEK 3 LEARNING TEAM DELIVERABLE

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ECO 561 Week 3 Learning Team Deliverable

Learning Team Deliverable

As future business managers or entrepreneurs, the classification and types of marketstructure, upsurge the team’s interest. Thus, this week’s team deliverable focuses on pure monopoly, monopolistic competitive markets, oligopoly, and pure competition. In economics, market structure refers to the number of firms producing identical products or services.

In a pure monopoly there is only one! The team pinpointed some key terms that helped us differentiate this type of market from the other three structures. A“single seller” monopoly is one where a single firm is the sole producer of a good or service. A “no close substitutes” is a company that sales a product and there is nothing in the market the can be used as a substitute, therefore everyone have only one place to go to buy the produce. The “price maker” is when a firm has control over the quantity supplied; consequently they will have control over the price of the product they are producing. The “blocked entry” limits competitors from entering a market due to certain barriers such as economic or legal, things such as patents or licenses (McConnell, Brue & Flynn, 2009).A monopoly exists when there is only one supplier of a good, with no close substitutes; the smaller the number of firm in this industry, and the larger those firms are, the more power that exists in that industry around control and prices. As a result, the greater the market share the more power the firm will have over the industry.Today, a few examples of monopolies are Microsoft, Wal-Mart, and the United States Postal Service (Simpson, 2010).

A monopolistic competitive market represents imperfect competition because the producers sell products through...