-Many sellers and many buyers
-Similar but differentiated products
-Limited control of prices
-Freedom to enter and exit the market
-The products are all similar so you know that one way or another you will get a form of the product that you want.
-Some firms will not be able to compete in the market.
-Few sellers and many buyers
-Standardized or differentialted products
-More control of prices
-Little freedom to enter or exit the market
-Few sellers are more powerful than other sellers
-Entering or exiting the market is difficult
-The sellers have more power to effectively control prices
-Only one seller
-A restricted, regulated market
-Control of prices
Different types of monopolies
Natural monopoly-Market situation in which production costs are lowest when there is only one firm providing output.
Government monopoly-A monopoly that exists due the government owning and running the business, or only allowing one producer of that product
Technological monopoly-Exists due to a firm controlling a method of manufacturing, or have the only rights to produce that product
Geographic monopoly-One company is the only provider of a good or service.
-Natural monopolies improve efficiency
-Government monopolies provide services in an efficient and cost-effective manner
-All types of monopolies discourage competition
-Economies of scale causes natural monopolies to exist
-Technological monopolies only last as long as the patent for the the product
-Higher prices for professional sports games