Econ: Types of Markets

Everyone is selling the exact same product...

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

There are a lot of sellers (over 100) and plenty of buyers

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

No single seller has enough power to influence the market

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

This market is easy for sellers to enter and easy to exit

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

There is no advertising for these types of products.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Examples of this type are: farm products, salt, snow shoveling services in a big city with lots of snow

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

In this market, everyone sells a product that is slightly different than everyone else.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

There are many sellers in this type of market, but they do have some price setting power.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

This market might feature some advertising when a new feature is added to a product

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

While not as easy as perfect competition, it is fairly easy for sellers to enter and exit this market.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly