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    A Market Is A Place Buyers and Sellers Meet To Make Exchanges, Such As Money For A Cell Phone. T

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    Monaoray Balowa
    This document discusses different market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition describes a market with many small firms and identical goods. Monopolistic competition involves many small firms selling differentiated goods. Oligopoly is dominated by a small number of firms that can compete or collaborate. Monopoly gives a single firm control over the entire market. Each structure makes certain assumptions about firm and consumer behavior.

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    A Market Is A Place Buyers and Sellers Meet To Make Exchanges, Such As Money For A Cell Phone. T

    Uploaded by

    Monaoray Balowa
    40 views3 pages
    This document discusses different market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition describes a market with many small firms and identical goods. Monopolistic competition involves many small firms selling differentiated goods. Oligopoly is dominated by a small number of firms that can compete or collaborate. Monopoly gives a single firm control over the entire market. Each structure makes certain assumptions about firm and consumer behavior.

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    This document discusses different market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition describes a market with many small firms and identical goods. Monopolistic competition involves many small firms selling differentiated goods. Oligopoly is dominated by a small number of firms that can compete or collaborate. Monopoly gives a single firm control over the entire market. Each structure makes certain assumptions about firm and consumer behavior.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    40 views3 pages

    A Market Is A Place Buyers and Sellers Meet To Make Exchanges, Such As Money For A Cell Phone. T

    Uploaded by

    Monaoray Balowa
    This document discusses different market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition describes a market with many small firms and identical goods. Monopolistic competition involves many small firms selling differentiated goods. Oligopoly is dominated by a small number of firms that can compete or collaborate. Monopoly gives a single firm control over the entire market. Each structure makes certain assumptions about firm and consumer behavior.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Minimum Wage

    A market is a place buyers and sellers meet to make exchanges, such as money for a cell phone.
    T
    Market Structure -refers to the nature and degree of competition in the market for goods and
    services. The structure of both market for goods market and service are determined by the nature
    of competition.

    1. Perfect Competition
    Perfect competition describes a market structure, where a large number of small firms compete
    against each other. In this scenario, a single firm does not have any significant market power. As
    a result, the industry as a whole produces the socially optimal level of output, because none of
    the firms can influence market prices.

    The idea of perfect competition builds on several assumptions:

    all firms maximize profits

    there is free entry and exit to the market,

    all firms sell completely identical (i.e., homogenous) goods,

    there are no consumer preferences.


    2. Monopolistic Competition
    Monopolistic competition also refers to a market structure, where a large number of small firms
    compete against each other. However, unlike in perfect competition, the firms in monopolistic
    competition sell similar, but slightly differentiated products. That gives them a certain degree of
    market power, which allows them to charge higher prices within a certain range.

    Monopolistic competition builds on the following assumptions:

    all firms maximize profits

    there is free entry, and exit to the market,

    firms sell differentiated products

    consumers may prefer one product over the other.

    3. Oligopoly
    An oligopoly describes a market structure that is dominated by only a small number of firms.
    That results in a state of limited competition. The firms can either compete against each other or
    collaborate

    The oligopolistic market structure builds on the following assumptions:

    all firms maximize profits,

    oligopolies can set prices,

    there are barriers to entry and exit in the market,

    products may be homogenous or differentiated, and

    there is only a few firms that dominate the market.

    4. Monopoly
    A monopoly refers to a market structure where a single firm controls the entire market. In this
    scenario, the firm has the highest level of market power, as consumers do not have any
    alternatives. As a result, monopolies often reduce output to increase prices and earn more profit.

    The following assumptions are made when we talk about monopolies:

    the monopolist maximizes profit,


    it can set the price

    there are high barriers to entry and exit,

    there is only one firm that dominates the entire market.

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