The Features
‧numbers of sellers and buyers.
‧nature of products, e.g., whether they are
homogeneous or differentiated
‧ease of entry and exit
‧availability of information .
Classification
Perfect
competition
Monopolistic
competition
Market structure
Imperfect
competition
Oligopoly
Monopoly
Choose three Winnie Poohs to be the actors:
Student A……
Student B……
Aside………...
One day, student A met student B on the street…
Am…it’s because I feel
great pressure from my
working environment.
Hi! B.
Why do you look so
upset?
So, S
Student A suggested student B to go to Landau Island.
So that they could visit the temple.
Oh! It’s a good idea!
Let’s go!
Let us go to Landau Island
to have a happy hour!
So you can relax~~
As a result, student A and student B went to
Landau Island with their friends.
Ha ha…
They went from Tai Po by KCR, MTR to
Tsai Sha Chu. And they went to Landau
Island by ferry.
And they decided to go to temple by bus. But
when they arrived at the bus stop, the bus
went away.
OH! The bus…
Apart from the bus, we can go by taxi and
on foot. But it is too expensive to take a taxi.
But we need to take 3 hours on foot.
Why there is no other bus companies
established to provide the bus services
in Landau Island?
It is because the government only allow the NLB to
provide the bus services from Mui Wo to temple.
The other bus companies are not allowed.
This is called government franchise
It is monopoly in the market. The NLB must
earn a lot of money.
I don’t know. It’s difficult to know the NLB’s
profits. Apart from that, they still need to face
the other competitors. E.g., taxi…
Oh! I understand now.You are so clever.
After a hours, they can get on the bus.
Yeah!!
end
The Characteristics
(1) There is only one seller
in the whole industry.
(2)There is no close substitute
for its product.
(3)Entry to the industry is
extremely difficult or even
impossible
(4)Market information is
highly restricted.