3.12.docx - Market Structure Summary Sheet <-Characteristics-> <-Performance-> Efficiency Market Type of sellers Mkt Conct Ratio Product Barriers

3.12.docx - Market Structure Summary Sheet...

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Market Structure Summary Sheet <-- --------Characteristics -------- --> <-- --------Performance -------- --> Efficiency? Economic Profit Market Type # of sellers Mkt Conct. Ratio Product Differentiatio n Barriers to entry? Gov. Reg. of Price? Productiv e Allocativ e Shor t Run? Long Run? Example Perfect Competition Dozens to hundreds , too many for anyone to influence price small None, the firm sells an identical product, no advertising none None, firm is a "price taker" yes yes Yes, only in short -run no Agriculture comes close Monopolistic Competition Many small sellers small Yes, but the products are very similar Very low barriers, easy entry/exi t no no no yes No, profits will be "compete d away" by new firms Local retail fast food, gasoline, hair stylists, etc. Undifferentiate d Oligopoly
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