Helpful chart four market structures

Helpful chart four market structures - Oligopoly Few firms...

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Characteristics of four basic models These four market structures form a continuum from most competitive, on the left, to least competitive, on the right. In general, the closer a market is to the competitive end, the better the consumer will be served. Market characteristics that determine the economic environment in which a firm operates Degree of product differentiation Likelihood of new firm entering market Perfect Competition Large number of relatively small firms Undifferentiated product No barriers to entry Monopoly Single firm Produces product with no close substitutes Protected by a barrier to entry Monopolistic Competition Large number of relatively small firms Differentiated products No barriers to entry
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Unformatted text preview: Oligopoly Few firms produce all or most of market output Profits are interdependent Actions by any one firm will affect sales & profits of the other firms Market characteristics that determine the economic environment in which a firm operate: please fill this chart on your own using the following criteria and the lecture notes. Number & size of firms in market Degree of product differentiation Likelihood of new firms entering market Pure Competition Monopolistic Competition Oligopoly monopoly Number of Seller or firms Products in the market Barrier to entry Firms control over price Nonprice competition Long run and short run characteristics Examples Efficiency P=LMC P=min LATC...
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Helpful chart four market structures - Oligopoly Few firms...

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