MGT 100: GLOBAL BUSINESS
MARKET STRUCTURES
Monopolistic
Competition
Perfect 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:
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Number of companies
Strength of the buyer
Strength of the seller
Barriers to entry
Differences in goods sold
Structure
Perfect
Competition
Monopolistic
Competition
Oligopoly
Monopoly
Description
No influence on price, thousands of small companies, identical
goods, few barriers to entry (produce)
Little influence on price, hundreds 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)
Sources: