The 4 market structures Flashcards
Perfect competition
A market structure in which a large number of firms all produce the same product it must accept the quilibrium price at which it sells the good.
Monopolistic competition
Many companies selling similar but not identical products firms determine the pricing, supply and demand forces do not dictate pricing
Oligopoly
Limited competition; market share by a small amount of producers and sellers. Under the leadership of one firm.
Monopoly
COMPLETE control of a product or service
Market curves vs individual firm curves
Market curves: the sum of the individual demand curve in a given market
Individual firm: Shows how much output a firm in a perfectly competitive market will supply at any given price
Antitrust regulation
Laws that define monopolies and give government the power to control them and break them up
Ex: Amazon, google, Facebook
All facing antitrust charges because the government says that they have monopoly,
Market structure is competitive, those companies do not have competition.