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Market Structures

This document summarizes four main market structures: pure competition, monopolistic competition, oligopoly, and monopoly. It outlines key advantages and disadvantages of each structure. Pure competition has perfect information and no barriers to entry. Monopolistic competition has many sellers but product differentiation leads to unnecessary costs. Oligopoly has few sellers that dominate the market but barriers to entry. Monopoly gives a single seller absolute control over the market allowing price increases but poses high barriers to new companies.

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cgarcia
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69 views

Market Structures

This document summarizes four main market structures: pure competition, monopolistic competition, oligopoly, and monopoly. It outlines key advantages and disadvantages of each structure. Pure competition has perfect information and no barriers to entry. Monopolistic competition has many sellers but product differentiation leads to unnecessary costs. Oligopoly has few sellers that dominate the market but barriers to entry. Monopoly gives a single seller absolute control over the market allowing price increases but poses high barriers to new companies.

Uploaded by

cgarcia
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Market Structures

Pure Competition

Disadvantages
Advantages
● Corruption, because the businessman can
● There is perfect information: all the world have several companies and accede to bad
knows all the products and their prices in a habits (money laundering...etc)
market.

● Lack of ethics, due to the competition that is


● There are no barriers to entry: any company handled, they do not disclose exactly if the
can enter or exit the market. product harms health or the environment in
its production.
Monopolistic Competition Disadvantages
Advantages ● Differentiation implies costs that are not
necessary in a market of homogeneous
● Many sellers. Every company has many products (for example, in advertising). In
competitors the long term, efficiency is lost, the more
competitors, the less profit.

● There is freedom of entry and exit. Any


company can enter to sell in the market. ● There is no perfect information about prices
and products, as if it occurs in perfect
competition.
Oligopoly Disadvantages
Advantages

● Many sellers. Every company has many


competitors ● There are barriers to entry. There are
difficulties for between new companies

● High Profits Since there is such little


competition

● Few sellers. A few companies dominate the


market
Monopoly Disadvantages
Advantages

● For consumers there is no advantages,


however, for sellers it is since they have
absolute control over the market and can ● There are barriers to entry. There are much
take advantage of it by raising prices. difficulties for between new companies.

● Just one seller


Webgraphy
● Oligopoly Defined: Meaning and Characteristics in
a Market (investopedia.com)
● 5 Different Types of Market Systems | Types of Mar
ket Structures (moneyvisual.com)

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