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Market Structures - which they can change the prices of...

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Jazzer Estrellanes BABA2A Economics 1.) Pure Competition A form of Market Structure that involves a massive number of buyers and sellers, in which sellers do not have the power to control the prices, so they rather act as ‘price takers’ rather than ‘price makers’. Pure Competition is also characterized of having a free passage around the market and having a free flow of information. Furthermore, it exists when a lot of sellers would produce products and services that are somewhat identical in nature. Lastly, it usually involves businesses that typically run on a small scale, and that would usually follow the Law of Supply and Demand. 2.) Monopolistic Competition Contrary to Pure Competition, Monopolistic Competition is a structure involving a lot of ‘differentiated’ products, wherein entry and exit around the market could also be relatively easy. It has also an environment where there can be either few or many competitors present, and sellers under this market structure do have control, though not absolutely, over the pricing, in
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Unformatted text preview: which they can change the prices of their products as long as consumers are still willing to buy the product. 3.) Monopoly Monopoly exists when there is only a single firm operating in a specific industry. Entry to that type of market can be usually very difficult due to some instances which would serve as ‘barriers’ such as social and political. That ‘single firm’ has also control over the price over the products or services they produce. 4.) Oligopoly Like Monopoly, Oligopoly has also barriers to entry, though somewhat lesser than those of the monopoly. It has an environment where the market is dominated by a small number of sellers, where they produce products and services that are quite similar, thus results into a competition to gain most of the market share, which is usually a competition regarding quality and features instead of pricing. Lastly, firms under this market do present an interdependent relationship....
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