ILLUSTRATION OF MARKET STRUCTURE

CHARACTERISTICS
Market

Number of

Nature of Product

Ability to enter &

Structure

Seller

Differentiation

Exit in industry

Degree of control
over product
price

1. Perfect or
Pure
Competition

Very Large no.

of
sellers

Product is
identical

Very easy to
enter and exit

No control over
product price

2. Monopolistic

Large number of

Products are

Existence in the

Limited control

Limited control

Selling acting

differentiated
independently

industry is easy in
the long run

over product price

over product price

3. Monopoly

One Seller

Product is
unique/mo close
substitute

Very Difficult and

it is situational

Great control over

product price

Great control over

product price

National powder
Corporation
(NAPOCOR)

4. Oligopoly

Few sellers

Products are

Has control over

Has control over

Car, Computer,

product price

product price

homogenous

To enter in
industry is
possible
but not easy

Washing Machine,
and etc.

----------------------

Not easy to enter

Less Control
but possible

Less control
but possible

Great control over

product price

Great control over

product price

Competition

identical and

5. Duopology

Two Sellers

6. Monopoly

Many sellers but Uniform

there is only one
buyer

Very difficult to
enter

Degree of control
over product
price

No control over
product price

Example

Basic need like rice

sugar, and the like
Soft drinks,
toothpaste and
the
like.

Services