Teresa Goretti Y Mariana Mendoza
Competitions and Market Structures Market structures include perfect competition, monopolistic competition, monopoly and oligopoly
Monopoly
Types
Government
monopoly the governmet owns and operates
Technologic
Based on owenership or control of a manufacturing method, process, or other scientific advance.
Geographic
Based on the absence of other sellers in certain geographic area
Economics of scale
Situation in which the average cost of production falls as the firm gets larger
Natural
Market situation where the costs pf production are minimized
Perfect Competition
A theoretical situation
"Many sellers offer nearly identical products"
Necessary condition
"No single buyer or seller is large enough or powerfull enough to affect the price"
"Buyers and sellers are reasonably well-informed about products and prices"
"Buyers and sellers are free to enter into, conduct, or get out of bussiness"
"each buyer and seller act independently"
"Buyers and sellers deal in identical products"
Main topic
Oligopoly
Is a market structure in which a few very large sellers dominate the industry
Inderdependent behavior
Cooperative manner
Collusion
Formal agreement to set prices
Price-fixing
Pricing behavior
Tendency of oligopolist to work together
Monopolistic competition
Nonprice competition
Use of advertising, giveaways, or other promotional campaigns to convince buyers that the product is somehow better than another brand
product differentiation
"Real or imagined differences between competing products in the same industry"
