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- The four basic market structures are12:
- Perfect competition: a market where there are many sellers and buyers of the same product, no barriers to entry or exit, and perfect information.
- Monopolistic competition: a market where there are many sellers and buyers of slightly differentiated products, low barriers to entry or exit, and some degree of market power.
- Oligopoly: a market where there are few sellers and buyers of similar or differentiated products, high barriers to entry or exit, and interdependence among firms.
- Monopoly: a market where there is only one seller and many buyers of a unique product, very high barriers to entry or exit, and complete market power.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Four basic types of market structure characterize most economies: perfect competition, monopolistic competition, oligopoly, and monopoly. Each of them has its own set of characteristics and assumptions, which in turn affect the decision-making of firms and the profits they can make.quickonomics.com/market-structures/Summary
- Market structure refers to how different industries are classified and differentiated based on their degree and nature of competition for services and goods.
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There are four basic types of market structure in economics: perfect competition, imperfect competition, oligopoly, and monopoly. Perfect competition describes a market structure where a large number of small firms compete against each other with homogeneous products. Meanwhile, monopolistic … See more
Perfect competition describes a type of market structure where a large number of small firms compete against each other. In this scenario, a single firm does not have any significant … See more
An oligopoly describes a market structure that is dominated by only a small number of firms that serve many buyers. That results in a state of limited competition. The firms can either … See more
Monopolistic competition also refers to a type of market structure where a large number of small firms compete against each other. However, unlike in perfect competition, the firms in monopolistic competition sell similar but slightly differentiated … See more
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