Competition Market Structures Economics

ECONOMICS

Perfect competition
market structures
Monopoly Oligopolistic market
structures
Monopolistic market
structures
Single seller does
not have power.
All the companies
sell homogenous
goods (Nakandala,
Lau, & Zhang,
2020).
There is free exit
and entry to market
In this structure,
single firm has
highest level of
control in entire
market.
The government
only controls these.
For example- Indian
railway
It possess high
barriers to exit and
entry.
As they result in
lower outputs then it
has higher price as
compared to
competitive markets
(Lumenlearning,
2019).
Products offered by
oligopoly market are
homogenous and
differentiated.
Few firms dominate
the market.
Oligopoly consists
of majorly 3-5
dominant
organisations
(Nakandala, Lau, &
Zhang, 2020).
It holds certain level
of market power.
This power allow
them to change their
price at certain level.
The entry and exit to
market is free
Consumers can
prefer another
product to one item.
For example-
cereals, which have
different brands.
Most of them taste
slightly different
from one another.