Market Structure Website
A market structure is an economic model that helps economist examine the nature and degree of competition among businesses in the same industry.
- Similar but different products
- Independent Decision Making
- Imperfect information
- Freedom to enter or leave
- Limit Control of Prices
- There is A LOT of advertisement involved
- Product differentiation
- Many firms
- No entry and exit cost in the long run
- Independent decision making
- Buyers and sellers have imperfect information
- Sometimes there are extra charges when it comes to marketing since differentiation is such an important piece.
- Though more realistic than Perfect Competition it's more prone to inefficiency.
The least competitive type of market structure.
- Price Maker
- Barrier to entry
- Control of Prices
- Regulated Market
- Higher Prices- Firms with monopoly can set higher prices than in a competitive market
- Lack of Incentives- A monopoly faces lack of competition, meaning there is no little to no push for innovation.
A monopoly based off the firm controlling a manufacturing method, invention or type of technology.
It exist because the government either owns and runs the business or authorizes only one product.
It exist because there are no other producers or sellers within a certain region.
It happens when the cost of production are lowest when only one firm provides output.
When the Market is dominated by a small number of sellers
Both Apple and Microsoft have an Oligopoly when it comes to Operative Systems in the U.S.