MARKET STRUCTURE GUIDE
Perfect
Competition
Monopolistic
Competition
Market Structures
Oligopoly
Monopoly
A market structure identifies the characteristics of a market that influences how
buyers and sellers act. There are four types of market structures (1) perfect
competition (2) monopolistic competition (3) oligopoly and (4) monopoly. These
market structures differ in characteristics of:
Number of companies
Strength of the buyer
Strength of the seller
Structure
Perfect
Competition
Monopolistic
Competition
Oligopoly
Monopoly
Barriers to entry
Differences in goods sold
Description
No influence on price, thousands of small companies,
identical goods, few barriers to entry (produce)
Little influence on price, hunderds of small companies,
slightly different goods, few barriers to entry (Restaurants)
A lot of influence on price, tens of companies, variation on
goods does not matter, many barriers to entry (Gasoline)
100% influence on price, one company, goods are unique,
many barriers to entry (Tap Water)