Overview
Market structures play a crucial role in determining how firms operate and compete. Understanding the different types of market structures—perfect competition, monopoly, oligopoly, and monopolistic competition—helps students grasp the dynamics of pricing, market power, and strategic decision-making....
Key Terms
Example: Agricultural markets often exhibit perfect competition.
Example: Utility companies often operate as monopolies.
Example: The automobile industry is an oligopoly.
Example: Restaurants in a city represent monopolistic competition.
Example: A monopoly has significant market power.
Example: Airlines often use price discrimination based on demand.
Related Topics
Game Theory
Study of strategic interactions among firms, especially in oligopolistic markets.
advancedPricing Strategies
Techniques firms use to set prices based on market structure and competition.
intermediateConsumer Behavior
Understanding how consumers make purchasing decisions in different market structures.
intermediateKey Concepts
Perfect CompetitionMonopolyOligopolyMonopolistic Competition