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Types of Market

Structure
GROUP IV

Monopoly
It is a market situation that
has only one seller of the
particular product and
there are no substitutes.

Monopolist can
dictate his price

Monopoly
Examples:
Public utilities
Telephone
communication system
Electric power
Air transportation
Railroad transits

Marginal Revenues
Price

Quantity

Total revenue

Marginal
revenue

10

10

10

18

24

28

30

30

28

-2

24

-4

18

-6

10

10

-8

Monopolistic Competition
Presence of a big number of
sellers selling goods that are
similar in some respect but
differentiated in the minds of
the consumers.

Monopolistic Competition

Important
characteristics:
Large number of sellers
Products are similar but differentiated
Sellers are making decisions
independently