3.3 imperfect competitive markets

Question 1

what are the 4 main types of imperfect market structure
(MCOPM)

Answer 1

• Monopolistic competition
• Oligopoly—> duopoly
• Pure competition
• Monopoly

Question 2

Monopolistic competition
-defintion
-example

Answer 2

• in this market large number s of sellers have products that are in some way different from those of other sellers.
• toothpaste which has lots of different types like children’s, charcoal, sensitive

Question 3

Monoply
-defintion
-example

Answer 3

-in this market there is only one seller of products because there are no substitutes
- is the perth water coperation which is the only water cooperation in perth

Question 4

Oligopoly
-definition
-example
- other category
- example

Answer 4

• in this market there is a small number of businesses that dominate the market
  -an example is car making e.g toyota, ford, mercedes
  DUOPOLY
• which is a part of oligoply and is when there are 2 businesses that dominate the market
• an example is Apple and samsung in the phone market

Question 5

perfect competition
-definition
-example

Answer 5

• is when smaller businesses sell identical products and all share the competition
• an example is the banana market