Perfect Competition
Monopoly
Monopolistic Competition
 Oligopoly
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Many Producers
Standardized Products
Easy Entry and Exit of Producers
 Price Takers
 Independent Buyers and Sellers
 Results in economic efficiency
 examples
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One Producer
Barriers to entry
Significant control over Price
Natural
Government Monopolies
Technological Monopolies
 Geographic Monopolies
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Large number of producers
Similar but differentiated products
Some control over price
 Easy entry and exit of producers
 Provides a great deal of variety and
choice in products.
 Examples
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A few producers
Significant barriers to entry
Interdependence
 Examples
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Price Fixing
Market Allocation
Predatory Pricing
FTC and Dept. of Justice carry out
most business regulation
 Antitrust Legislation is the body of law
they use to promote competition
 Mergers are reviewed
 Anti-competitive business practices
are prohibited
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