Market Structures

Question 1

State the 5 market structures

Answer 1

• perfect competition
• monopoly
• monopolistic competition
• oligopoly
• monopsony

Question 2

State the 4 main features that each market structure may vary depending on and describe them

Answer 2

• the number of buyer and sellers in the market (The more firms there are, the more
  competitive the market is)
• barriers to entry and exit (barriers = low = easier to enter/exit the market + Barriers = high = hard to enter/exit the market)
• The degree of product differentiation (more differentiated the products, the less competitive the market)
• knowledge (how much people know)