Classifying Market Structures ppt
- 1. Market Structures DR. MATEO D. MACALAGUING JR. Associate Professor III UMAK
- 7. Type of goods produced •unique •homogenous-identical •homogenous-differentiated •no close substitute
- 8. Extent of non-price competition • controlled • no control • limited control • non-price • independent
- 9. Barriers to entry • very difficult • no barriers at all • not so easy
- 10. Perfect Competition Monopolistic Competition Oligopoly Monopoly Market control Number of competitors greater more
- 12. Many sellers!
- 14. Perfect Competition No price control!
- 15. Perfect competition No barriers at all No technical and financial requirements
- 16. Monopolistic Competition Many sellers acting independently
- 17. Homogenous but highly differentiated products
- 18. Limited control of price as long as the seller innovates.
- 19. Entry of new firms in the market is relatively easy.
- 20. Non-price competition is extensive and prevalent.
- 22. Oligopoly
- 23. Very few firms dominates the market.
- 25. Cartel- price agreement among sellers to promote their own economic interest
- 26. • Entry of new firms is difficult. Requires high investment
- 27. Monopoly
- 29. Product is unique/ no close substitute
- 30. Monopolist is a price maker/ no direct competitor.
- 31. Entering the market is very difficult because: •Monopolist owns a patent/copyright •requires high investment
- 32. Advertising in general is used to maintain public relation.
- 33. Your Turn! Tabulate the TYPES of MARKET and differentiate their features based on the following characteristics: a. number of buyer b. number of seller c. type of goods produced d. price setting e. barriers/limitations to competition