31343896
Description
Mind Map by Margarita CASEY, updated more than 1 year ago
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Created by Margarita CASEY
over 3 years ago
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Market Structure
- PERFECT
COMPETITION
- Many firms or sellers
- likely to be small
- likely to be small
- Freedom of entry
and exit (Low costs)
- Identical or
homogeneous product
- often large scale
production
- often large scale
production
- Demand curve elastic
- Firms have no
market power
- Normal profit
- Limited or none influence over price
- Competitive Market: a market
with a number of firms that
compete with each other.
- Examples: Agricultural markets
- Many firms or sellers
- MONOPOLY
- Complete market power
- Single seller or firm
- likely to be big
- likely to be big
- Unique product
- High barriers for entry and exit
(High costs and copyrights)
- Supernormal profit
- High influence over price
- A market with a single
supplier
- Examples: Google or Railways
- Complete market power
- Definition: the conditions which
exist in a market including the
number of firms.
- Most markets are in the middle
of these 2 types
- Monopolistic
competition
- nearer to competitive
markets
- nearer to competitive
markets
- Oligopoly
- nearer to monopolies
- nearer to monopolies
- Monopolistic
competition
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