Market Structure and Market Failures

A market that has a few sellers of basically the same goods.

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

One single firm controls the entire industry.

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

A market where brand-name loyalty is more important than product differentiation.

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

The actions of an individual seller do not affect the overall supply or price of a good or service.

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

Only five firms produce this product in the Unites States.

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

Firms in this kind of market produce goods that are very close substitutes.

• Perfect Competition

• Pure Monopoly

• Monopolistic Competition

• Oligopoly

All buyers and sellers have sufficient information to maximize self-interest.

• Perfect Competition

• Monopoly

• Monopolistic Competition

• Oligopoly

Oligopoly

• market structure in which only a few large sellers dominate and have the ability to affect prices in an industry

• market structure having all conditions of pure competition except for identical products

• market structure in which a firm has a monopoly because of its location or the small size of the market

• monopoly created and or owned by the government

Government monopoly

• monopoly created and or owned by the government

• the exclusive legal right, given to an originator or an assignee to print, publish, perform, film, or record literary, artistic, or musical material, and to authorize others to do the same.

• market structure in which the average costs of production are lowest when all output is produced by a single firm

• a government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using, or selling an invention.

Monopolistic competition

• market structure characterized by a single producer in a market

• market structure in which a firm has a monopoly because of its location or the small size of the market

• market structure having all conditions of pure competition except for identical products

• market structure in which the average costs of production are lowest when all output is produced by a single firm