Market Structure Website

Overview:

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

Monopolistic Competition

Characteristics

  • 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

Advantages

  • Product differentiation
  • Many firms
  • No entry and exit cost in the long run
  • Independent decision making
  • Buyers and sellers have imperfect information

Disadvantages

  • 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.

Examples:

Monopoly

The least competitive type of market structure.

Advantages

  • Price Maker
  • Barrier to entry
  • Control of Prices
  • Regulated Market

Disadvantages

  • 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.


Examples:


Technology Monopoly

A monopoly based off the firm controlling a manufacturing method, invention or  type of technology.

Government Monopoly

It exist because the government either owns and runs the business or authorizes only one product.

Examples

  • USPS
  • Electricity
  • Water

Geographic Monopoly

It exist because there are no other producers or sellers within a certain region.

Natural Monopoly

It happens when the cost of production are lowest when only one firm provides output.

Oligopoly

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.

Sources

http://247wallst.com/commodities-metals/2010/11/12/the-next-7-american-monopolies-nflx-siri-lulu-awk-fico-mcp-mon/

Comment Stream

2 years ago
0

I like your use of images, the examples really helped me understand the different monopolies. Good job. :)

2 years ago
0

Your images are suitable for the information provided.

2 years ago
0

Images and examples are very informational. It helped me learn a little more about each of the monopolies and market structures. 😊

2 years ago
0

Your images made the webpage so much more appealing, but sometimes the text got drained out. 😘

2 years ago
0

I enjoyed the little slideshow of pictures you have! Great information as always ^_^

2 years ago
0

I like how you used a screenshot of the book to show the characteristics of a monopoly.

2 years ago
0

Informative and visually appealing. Good job.