Summary - ECO1010F (ECO1010F)

, MARKET STRUCTURES : PURE /PERFECT COMPETITION



The Four Market models
Market Structure Continuum



Pure MonopolisticOligopoly Pure
Monopoly
Imperfect competition


Differences :
number of firms in the
industry : Production of standardized or


exit
differentiated product : Difficulty to enter or the
industry



① Pure Competition :




of firms
-very large number
-



standardized product

-very easy entry/exit to and from
industry

② Pure
monopoly
-

One firm
-




unique product
-




Entry/exit is completely blocked



③ Monopolistic competition
number of sellers
Large
-




-
Differentiated product, non-price competition
-




Entry/exit quite easy


④ Oligopoly
-


Few sellers

-
standardized or differentiated product