Characteristics of the Various Market Structures.docx

Characteristics of the Various Market Structures.docx -...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Market Structures Page 1 of 10 Characteristics of the Various Market Structures Ebony Williams Principles of Economics Hector Morales
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Market Structures Page 2 of 10 Abstract The focus of this paper is to talk about the four market structures. Throughout the object is to learn the characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly.
Image of page 2
Market Structures Page 3 of 10 Based on what I know all businesses will maximize profits at the output level where MR=MC. In society, companies operate in a variety of settings. These different settings, are based on different market conditions, which in turn, effects the behavior of different businesses in different ways. To examine these type of actions, economists have recognized characteristics that make some companies like one another and other companies different from one another. Which has led to the study of firms based on four categories of market structure, which are perfect competition, monopolistic competition, oligopoly, and monopoly. Classifying characteristics for each type of market structure include the number of firms in the industry, whether the products are identical (homogeneous), ease of entry for new firms in the industry, and the power that the firm has to influence the price of its products. The following table summarizes the characteristics of the four types of market structure: Perfect Competition Monopolistic Competition Oligopoly Monopoly Number of Firms Many buyers and sellers in the market Many firms competing for the same group of customers Only a few sellers offer the same product one Pricing Decisions Each buyer and seller takes the market price as given Normal deadweight loss of monopoly pricing
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern