Market Structure, yo
Market Structure, yo
All farms have similar products
Perfect Competition
No control over Prices
Identical products
Many producers and consumers
Easy entry into the Market
Perfect Competition is when a large number of firms produce essentially the same product.
No other companies sell Fritos!
Monopoly
Substantial control over prices
Unique product
One producer
Monopoly is a market/industry consisting of a single producer of a product that has no close substitutes.
An olbigopoly is a market/industry thats only dominated by a few firms that produce similar or identical products.
Mcdonalds competes against burgerking.
Obligopoly
High barriers to entry
Few producers
Similar products
Some control over prices
BP oil spill had a negative externality.
market failures
technology spillover- when tech knowlege spreads from one company to another
Positive externality- has benefits, but not on the producers or consumers.
Negative externality- cost that falls on someone other than the consumer or producer, and has an undesired effect.
Market failures don't allocate goods and services in the most efficient way.
Monopolistic competition
some control over prices
Few barriers to entry
Differentiated Products
Many Producers
