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Unformatted text preview: discussed two types of market structure. In a competitive market, each firm is so small compared to the market that it cannot influence the price of its product and, therefore, takes the price as given by market conditions. In a monopolized market, a single firm supplies the entire market for a good, and that firm can choose any price and quantity on the market demand curve. The market for tennis balls fits neither the competitive nor the monopoly model. Competition and monopoly are extreme forms of market structure. Com-petition occurs when there are many firms in a market offering essentially iden-tical products; monopoly occurs when there is only one firm in a market. It is O L I G O P O L Y 349...
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.
- Spring '10