Economic

Market structure describes the competitive environment in a mart. on that point atomic number 18 4 types: +Perfect competition +Monopoly +Oligopoly + monopoliseric *PERFECT COMPETITION Is the avocation that has the following characteristics: + on that point be many sellers in the commercialize and each seller is relatively small in surface + self-coloured product :the product offered by the various soakeds and king-sizedly the same(p) +Perfect schooling : all sellers and buyers have full tuition regarding the bell, quantity and the place where the product atomic number 18 sold. +There atomic number 18 no barriers to entry or pull up stakes: slosheds are broad to enter the foodstuff if they see its profitable for them + severally firm has price taker : firm has no control over the market price. In this case, firm has no market ability ( market power is the ability to objurgate the price for the product) Examples of everlasting(a) competition : the rice market Conclusion: its sound for both buyer and seller . *Monopoly: is a market that has the following characteristics : +There is alto bringher one manufacturer proviso the whole market + droll product : the product doesnt have any be quiet substitutes + There are strong barriers to entry: meaning that another(prenominal) firm pottyt enter the market. There are 3 sources: ~ownership of a key resource: only 1 firm has the approach path to the key resource that uptake to produce the good.

~The government gives a single firm the sole(prenominal) right to produce some good ~costs of production educate a single producer more efficient than a large number of producers. +Monopolist firm is a price maker : firm c! an influence the price of its product Examples of monopoly : the EVN (electricity of Vietnam), tivi direct bravia from Sony Conclusion: Monopoly is not good for the society as a whole because it creates the deadweight loss. *Oligopoly: +There are few firms, each firm is relatively large in size: each firm supply satisfying portion of the total market output + Products are analogous or differentiated : products that offered by different firms are...If you urgency to get a full essay, order it on our website: OrderEssay.net

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