Market Structure
Definition:Market structure = how a market is organized based on number of firms, type of products, and control over price.
Determines price, quantity, and competition.
Types of Market Structure
1. Perfect Competition
Many sellers, identical products
Firms cannot control price
Easy to enter or leave market
Example: Wheat, rice
2. Monopolistic Competition
Many sellers, products slightly different
Some control over price (due to brand/style)
Easy to enter
Example: Clothing, restaurants
3. Oligopoly
Few big firms dominate
Products similar or different
Firms watch each other
Hard to enter
Example: Cars, phone companies
4. Monopoly
One firm only
Unique product, no close substitute
Firm sets price
Very hard to enter
Example: Electricity, water supply
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