Unit 5 Assignment Market Structures

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Unit 5 Assignment Market Structures In this assignment I will be describing the four basic types of market structures. The four basic types of in microeconomics. I will create this in an essay format and submit upon completion. Although there are many different examples of economies in the world, all of them demonstrate one or more of the four basic types of market structure. For this assignment, in my own words I will do the following: Identify the four basic market structures, in order, from the best for consumers, to the being the best for producers. I will also describe each in terms of their distinguishing characteristics (e.g., monopolies have only one producer). I will make certain you describe how the characteristic distinguishes the associated market structure from other market structures. For this assignment I will create a well written response essay. I will fully make sure to use well developed paragraphs to fully explore and explain your opinions and ideas. The four basic market structures are pure monopoly, pure competition, monopolistic competition, and oligopoly. Monopolistic competition is to be defined as a market structure, where a large number of small firms compete against knew another with different products. This structure allows consumers more of a say so which appeals to the primary. This structure would be identified as the best structure to consumers. In this structure each firm demand curve would be sloped downward. Also with this structure it be easy for a from to approach for entry. This structure has many sellers but there is an easy exit and easy entry. Secondly, in chronological order we would have pure competition. Pure competition is when a large number of small firms compete against each other similar to monopolistic competition. This differs because this structure allows for homogeneous products and sales. This structure allows for an easy exit and easy entry. Also with this structure all firms maximize products although there are no consumers preferences. Thirdly would be the oligopoly market structure. Oligopoly structure is when only a few firms compete against one another. With this structure it still allows firms maximize their profits, hence oligopolies are allowed to set their own price which makes them different. Oligopolies are also allowed offer products that are homogeneous as well as differentiated. With this structure it also allows for a few firms to be demomate. As a firm in this structure it would be a barrier for entry an exit unlike the other to market structures previously discussed. Lastly in the four market structures there is a monopoly. A monopoly structure is referring to one single firm controlling the whole market. This structure would leave consumers with no extended choices. Monopolists often reduce output to leverage more profit by increasing prices. With this structure it makes for very high entry and exit barriers. This structure would also allow monopolies to set their own prices in the market. In conclusion, there are four basic structures in the market world. The best appealing structure to the consumers would be the monopolistic competition structure. The least appealing structure to consumers would be a monopoly. Vise versa would be for the firms, as a firm the most appealing would be a monopoly to merely control everything around and maximize on the profits. The least favorite would be a monopolistic market because as a firm you would have to compete with other firms.

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