Zusammenfassung der Ressource
Market Structures
- Monopoly
- Single producer in market -
1 business has 100% of
market share (pure
monopoly).
- Likely to erect barriers -
prevent others from
entering market.
- They are price makers -
have significant
influence on price.
- Any business with over 25% of market
share is classed as a monopoly.
- Oligopoly
- Many businesses but only few dominate market.
- Tend to have differentiated products -
with strong brand identity.
- Brand loyalty encouraged but advertising and promotion.
- Prices normally stable -
short price wars occur.
- Some entry barriers -
high start-up costs etc.
- Monopolistic Competition
- Large number of relatively small businesses.
- Few barriers of entry.
- Products are similar -
different from each other.
- Brand identity is relatively weak.
- Not price takers - only
have limited degree of
control over prices.
- Perfect Competition
- Large number of businesses -
no 1 business is big enough to
influence other businesses.
- They are price takers -
due to no market/price
leaders.
- Goods sold are homogenous -
no difference between goods
from businesses.
- Businesses have equal access to technology.
- Consumers have full market information.