Comparing Market Types Special Traits Kind of Another Name for Number of Producers Type of Market Barriers to Entry Competition Firms One None No entry possible Price-setter Only one firm Monopoly Primarily non-price competition Medium barriers (difficult entry) Firms can collude and behave as a monopolist Oligopoly A few N/A Non-price competition; price competition Product differentiation and branding Low barriers Monopolistic Competition Many Price-maker (easy entry) Perfect Competition No barriers (free entry) Perfectly elastic demand Agreat many Price competition Price-taker Using the chart above, if you were a buyer (consumer) which of the four market structures would you want to buy from? Explain the benefits that come from this level of competition.

Comparing Market Types Special Traits Kind of Another Name for Number of Producers Type of Market Barriers to Entry Competition Firms One None No entry possible Price-setter Only one firm Monopoly Primarily non-price competition Medium barriers (difficult entry) Firms can collude and behave as a monopolist Oligopoly A few N/A Non-price competition; price competition Product differentiation and branding Low barriers Monopolistic Competition Many Price-maker (easy entry) Perfect Competition No barriers (free entry) Perfectly elastic demand Agreat many Price competition Price-taker Using the chart above, if you were a buyer (consumer) which of the four market structures would you want to buy from? Explain the benefits that come from this level of competition.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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