Market Structure, yo
Monopolistic competition
Many Producers
Differentiated Products
Few barriers to entry
some control over prices
BP oil spill had a negative externality.
market failures
Market failures don't allocate goods and services in the most efficient way.
Negative externality- cost that falls on someone other than the consumer or producer, and has an undesired effect.
Positive externality- has benefits, but not on the producers or consumers.
technology spillover- when tech knowlege spreads from one company to another
Mcdonalds competes against burgerking.
Obligopoly
Some control over prices
Similar products
Few producers
High barriers to entry
An olbigopoly is a market/industry thats only dominated by a few firms that produce similar or identical products.
No other companies sell Fritos!
Monopoly
Monopoly is a market/industry consisting of a single producer of a product that has no close substitutes.
One producer
Unique product
High barriers to entry
Substantial control over prices
All farms have similar products
Perfect Competition
Perfect Competition is when a large number of firms produce essentially the same product.
Easy entry into the Market
Many producers and consumers
Identical products
No control over Prices