differenciating market structures

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Running head: Differentiating Between Market Structures 1 Differentiating Between Market Structures Paper Learning Team B Eco/212 December 6, 2010 Lisa Messemer
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Differentiating Between Market Structures 2 Differentiating Between Market Structures The market structures of today’s economy are separated into four categories, Monopoly, Oligopoly, Perfect Competition and Monopsony. The interconnected characteristics of the market structures and goods help dictate which category a company falls into. Each company big and small, private or public is categorized within one of the market structures. In this paper, we will compare the different kind of goods and the labor market equilibrium of a large corporation, which will then be categorize into one of the four market structures. There are four major categories of goods, Private and Public Goods as well as Common Resources and Natural Monopoly. These four categories of goods can also be divided as expendable, non-expendable, rival and non-rival. Goods are considered expendable if a person can be prevented from using it. A good is considered rival if one person’s use of the good diminishes other peoples use (n.d.). Private goods are defined as items of consumption that if used by one person or firm, may not be available for others. Private firms usually provide private goods. Private goods are excludable and rival. Examples of private goods are clothing, food. Private goods are characterized as excludable and rival. Examples of Private goods are food and clothing. Once a food is consumed no one else can consume anymore (, n.d.) Public goods are defined as an item whose consumption is not decided by the individual consumer but by the society as a whole, and which is financed by taxation. A public good (or service) may be consumed without reducing the amount available for others, and cannot be withheld from those who do not pay for it. Public goods are Non-rival and non-expendable. Examples of public goods are the police, fire departments, and military. These are available to everyone and will never run out of the resource (Business Dictionary, 2010) Common Resources is a resource that has a tangible benefit for the consumer. Common
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Differentiating Between Market Structures 3 goods are Non-excludable and rival. One of the biggest concerns is over usage from poor
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