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Unformatted text preview: 1 Selling Environment or Market Structure Chapter 9-2 Laugher Curve In Canada, there is a small radical group that refuses to speak English and no one can understand them. They are called separatists. Laugher Curve In the United States we have the same kind of group. They are called economists. Nations Business Introduction Market structure is the focus real-world competition. Market structure refers to the physical characteristics of the market within which firms interact. Introduction Market structure involves the number of firms in the market and the barriers to entry. Market Structure The selling environment in which a firm produces and sells its product is called a market structure . Defined by three characteristics: The number of firms in the market The ease of entry and exit of firms The degree of product differentiation F ro m y o u r b o o k ! F ro m y o u r b o o k ! 2 Introduction Perfect competition, with an infinite number of firms, and monopoly, with a single firm, are polar opposites. Monopolistic competition and oligopoly lie between these two extremes. Perfect Competition Perfect Competition is a market structure characterized by: Many large firms, so large that no one firm has the ability to affect the market. These firms are price takers they have to go along with the market price. Identical products, the products are identical, generic products....
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This note was uploaded on 01/01/2011 for the course ECON 101 taught by Professor E during the Spring '10 term at American College of Computer & Information Sciences.
- Spring '10