differentiating between market structures

differentiating between market structures - D...

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Differentiating Between Market Structures ECO 212 Jennifer Rice, Tonia Pieper, Traci Deanda, James McCann Perfect Competition Monopoly Monopolistic Competition Oligopoly An example of an organization eBay auctions Water co. Coca-Cola Kraft Foods Goods or services produced by the organization Anything and everything, many of the same thing sold by multiple sellers water Dark, carbonated beverage Cheese, Macaroni and Chesse; and many other products Barriers to Entry None Yes None None Number of organizations unlimited One per region Pepsi, Dr. Pepper, several generic brands many Price elasticity of demand Very elastic; prices are based solely on supply and demand; there is much competition, which keeps prices down. Producers are price- takers. The price is elastic because water is a necessity and will be bought regardless of price I would say that it is inelastic to a point. Avid Coca-Cola drinkers will pay a higher price if necessary, but there would be a point where they would look for substitutes. It won’t taste the
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This note was uploaded on 07/13/2011 for the course PSYCH 330 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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