LO9.1Know the names and the main characteristics of the four basic market models.
View full document
Very briefly, the four models are as follows:
View full document
instead on attributes like design and quality (an approach called product differentiation). Entry to monopolistically competitive industries is quite easy. In an oligopoly there are only a few sellers of a standardized or differentiated product; consequently each firm is affected by the decisions of its rivals and must take those decisions into account when determining its own price and output. Table 9-1 summarizes the characteristics of the four models for easy comparison and later reference. In discussing these four market models, we occasionally distinguish the characteristics of perfect competition from those of the three other basic market structures, which together we designate as imperfect competition. Table 9-1: Characteristics of the Four Basic Market Models. LO9.2List the conditions required for perfectly competitive markets.
View full document
Want to read all 47 pages?
Previewing 3 of 47 pages Upload your study docs or become a member.
Want to read all 47 pages?
Previewing 3 of 47 pages Upload your study docs or become a member.
End of preview
Want to read all 47 pages? Upload your study docs or become a member.
