EC102 Market Structures

Question 1

Perfect competition

Answer 1

Many buyers
Many sellers
Homogenous products 
Consumers are well informed about prices and substitutes 
No barriers to entry

Question 2

Monopoly

Answer 2

Many buyers 
One seller
No close substitutes 
Consumers are well informed about prices and substitutes 
Barriers to entry

Question 3

Oligopoly (duopoly)

Answer 3

Many buyers
A few sellers
Products may or may not be homogenous
Consumers may or may not be well informed about prices and substitutes
There may or may not be barriers to entry