Market Structure

Large number of consumer and firm

Homogenous Products

Price-taker

no barriers to entry and exit

perfect market knowledge

High barriers to entry and exit

Single seller

Price discrimination

Profit maximiser

price maker

Small number of large firms

Interdependence

Price Rigidity

Either homogenous or differentiated
products/services

high barriers to entry (but lower
than monopoly)

Large number of small firms

firm sell similar but not homogenous products
(product differentiation)

freedom of entry into and exit out of industry

competition based on product quality, price, and
marketing