Market Structure, yo

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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