Market Structures and Monopoly

What is a Market Structure?

A market structure is an economic model that helps economists examine the nature and degree of competition among businesses in the same industry.

What is a Monopoly?

A market structure in which one one seller sells a product for which there are no close substitutes. The term monopoly may be used for either market structure or monopolistic business.

Advantages of disadvantages of a Monopooly

Advantages:

1.  Usually leads to innovation

2.  More efficient in production.

Disadvantages

1. Prices are ridiculous

2. Lack of variety

There are several different types of market structures, they include:

1) Monopolistic Competition

2) Oligopoly

3) Monopoly

Types of Market Structures

Monopolistic Competition

Competition where there are many sellers that offer similar products but they all differ from each other in a way.

Apple's iPhone and Android's line of smart phone dominate the market currently. The typical smart phone runs off of either iOS or Android operating system. They're both the same thing but dominate the market while at the same time not being seen as a standardized product.

Oligopoly

Types of Monopolies

Natural Monopoly: A market situation in which the costs of production are lowest when only one firm provides output.

Government Monopoly: A monopoly that exists because the government either owns sand runs the business or authorizes only on producer.

Technological Monopoly: When a firm controls a manufacturing method, an invention, or a type of technology.

Geographic Monopoly: Where a producer or seller controls a certain region.

Natural Monopoly

Government Monopoly

A market structure in which only a few sellers offer similar product, is less competitive than monopolistic competition. An oligopoly, a few large firms have a large market share percent of total sales in a market and dominate the market.

Comment Stream

2 years ago
0

I like the examples you used and everything was clearly defined, good job

2 years ago
0

love your background twin! very informative 😊