The four types of market structure

dsfcsdgdfgbdfcghdfgh

1. The Four Types of Market Structure
Monopoly

Oligopoly

Monopolistic
Competition

Perfect
Competition

• Tap water
• Cable TV
• Tennis balls
• Crude oil
• Novels
• Movies
• Wheat
• Milk
Number of Firms?
Type of Products?
Many
firms
One
firm Few
firms
Differentiated
products
Identical
products

2. Market
Structures
There are 4 types of
market structures:
•Perfect Competition
•Monopolistic Competition
•Oligopoly
•Pure Monopoly

3. Perfect Competition
The 5 Characteristics of a
market that has perfect
competition:
1.Many buyers and sellers
2.All the products are identical
3.There are no price regulations in
the market
4.Sellers/Producers can enter and
exit the market very easily
5.Sellers and buyers have equal
information on the products

4. Oligopoly
Characteristics of a
market that has an
oligopoly:
1.There are only a few
sellers/producers
2.Products can be identical or very
similar
3.The market is very difficult for
other producers to enter
4.Non-price competition exists
among buyers of the products

5. Monopoly
Characteristics of a
market that has a
monopoly:
1.There is only one
seller/producer
2.There are no substitutes for the
product
3.No other sellers/producers can
enter into the market easily
4.The seller/producer has
complete control over the price
of the product

6. Four Main
Types of
Monopolies
Natural
Geographical
Technological
Governmental