Market Structures

perfect competition

monopolistic competition

oligopoly

monopoly

monopolistic competition

monopoly

oligopoly

perfect competition

oligopoly

oligopsony

cartel

collusion

There are many buyers and many sellers.

The products sold are similar but differentiated.

A market leader may emerge from among the many suppliers.

There are many barriers to entry and exit.

prevalence of negative externalities

disequilibrium in the market

inefficient allocation of resources

low level of positive externalities

energy drinks

education

public libraries

health services

A good or service that can bring about a positive or negative externality

A good or service that has a negative impact on the user, and a third party

A good or service that is prohibited or regulated by the government

A good or service that as a negative impact on the economy

impose a higher tax on these goods

Set a minimum age for the consumption of these goods

Inform the people about the negative effects of consuming these good

Impose a total ban on the production & consumption of these goods

It is the cost that is involved in the production & consumption of a good or service.

It is the benefit enjoyed by a third party from the consumption of a good or service.

It is the benefit that a person derives from consuming a certain good or service.

It is the benefit that merit goods bring.

Competition is good for both buyers and sellers.

The setting of the price & quantity of goods sold is affected by the market structure that is in place.

The government intervenes in the market to prevent huge profits for businesses.

Lack of competition in business can lead to an inefficient allocation of resources.