Market Structures

Overview: Market structure can be defined as the interconnected characteristics of a market.


- A specific area of buyers and sellers.

- One particular commodity.

- Presence of buyers and sellers.

- One price of a product.

                      Learn more about different types of market structures

Monopolistic Competition

A type of imperfect competition in which many producers sell products that are differentiated from one another. It's basically a a midpoint between perfect competition and total monopoly. This is very common in free market economies.


- Freedom to enter and leave the market

- No specific barriers to entry

- There is enough differentiation to create diversity, choice, and utility.


- Generates unnecessary waste

- Productively inefficient in the short and long run.


Where there is limited competition and the market is shared by a small number of producers and sellers.


- Large firms are able to make huge profits

- Dominant market players make long-term profits

- Customers can easily make price comparisons.


- Price settings can be highly disadvantageous for consumers.

- It is difficult for new firms to enter the market.

- Firms cannot make independent decisions otherwise they risk  significant losses.  


The scenario in which a specific person or business is the only supplier or seller of that product.

                                           Learn about 6 enormous monopolies


- Domestic monopolies can become dominant in their own territory.

- Innovation is more likely with large enterprises.

- Monopolies are protected from competition because their are barriers to entry.

- Profit are often invested in new technology.


- Society is burdened with higher prices.

- Restricts choice for consumers.

- Reduces economic welfare.

- Reduces consumer sovereignty.

                     Natural Monopoly: This type of monopoly occurs when an industry finds it                            most sufficient for production to be permanently concentrated in a single                               business concern rather than competitively contesting.

                     Geographic Monopoly: This type of monopoly occurs when one company or                           business is the sole provider in a certain area or region. This is often seen                               within phone and internet providers.

                     Technological Monopoly: This monopoly focuses on the controlling the                                  manufacturing methods and hold rights over that manufacturing.

                      Government Monopoly: Occurs when a government cooperation is the main                          provider of a particular good or service.


Comment Stream

2 years ago

I like your font and background choices and I thing the information graphic at the bottom of your website was informative and good. -Philip Rodriguez

2 years ago

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2 years ago

Your background and font colors are very pretty. You have a lot of good information and images. You also have well-sourced resources

2 years ago

Good visuals and information

2 years ago

I like the pictures but I think that you need more information for the advantages/disadvantages.

2 years ago

I like the visuals and feel of this website. You make me feel very happy on the inside. The only thing I recommend is that you add examples of each business.

2 years ago

love your background meena