Overview
Market structures play a crucial role in economics by defining how firms interact and compete within a market. Understanding the different types—perfect competition, monopolistic competition, oligopoly, and monopoly—helps us analyze pricing strategies, market power, and consumer welfare. Each struct...
Key Terms
Example: Agricultural markets where many farmers sell the same crop.
Example: Restaurants offering different cuisines.
Example: The automobile industry.
Example: Local utility companies.
Example: A monopoly can set higher prices due to lack of competition.
Example: High startup costs in the telecommunications industry.
Related Topics
Key Concepts
Types of Market StructuresCharacteristics of Each StructureMarket PowerPrice Determination