MARKET STRUCTURES
BY: Destanie Massey
Market structures
The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market.
The four market structures.
Oligopoly
a market situation in which control over the supply of acommodity is held by a small number of producers each of whom isable to influence prices and thus directly affect the position ofcompetitors
monopolistic competition
Monopolistic competition is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
perfect competition
the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent and the market price of a commodity is beyond the control of individual buyers and sellers.
Monopoly
exclusive control of a commodity or service in a particular market or a control that makes possible the manipulation of prices.
Introduction to Market Structure