Market Structures

a market is

• where goods/services are exchanged by buyers/sellers

• anything that prevents the flow of goods and services imported

• the ability to produce more of a product than another country using the same resources

• the ability to produce a product with lower opportunity costs than another country 

markets are classified by

• competition

• imports

• exports

• advantages

markets where many businesses sell the same products

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

Follows these conditions:

many buyers/sellers; all sell same product; buyers/sellers are informed; free market entry/exit

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

markets where many businesses sell products that are similar, but not identical

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

follows these conditions:

many sellers; low barriers to enter market; slight control over price; differentiated products

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

a market dominated by a few, large profitable firms

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

follows these conditions:

few sellers; high barriers to enter market; some control over the price; some differentiated products

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

market dominated by a single seller

• perfect competition

• monopolistic competition

• oligopoly

• monopoly

follows these conditions:

one seller; complete barriers to enter market; complete control of the price; no differentiated products

• perfect competition

• monopolistic competiton

• oligopoly

• monopoly