Market Structure Summary Sheet

<-- --------Characteristics -------- -->

<-- --------Performance -------- -->

Efficiency?

Market
Type

Mkt
Barri Gov.
# of Co Product ers
Reg.
seller nct. Different
to
of
s
Rat
iation
entry Price
io
?
?

Doze
ns to
hundr
eds,
too
Perfect
many
Competiti
for
on
anyo
ne to
influe
nce
price
Monopoli
stic
Competiti
on

Many
small
seller
s

None,
the firm
sells an
identical
product,
no
advertisi
ng

None,
firm is
a
"price
taker"

Very
low
barri
ers,
easy
entry

Produ
ctive

Alloc
ative

Economic
Profit
Sh
ort
Ru
n?

Long Examp
Run?
le

Ye
s,
onl
y
in
sh
ortrun

Agricult
ure
comes
close

No,
profits
will be
"comp
eted
away"

Local
retail
fast
food,
gasolin
e, hair

by
new
firms

/exit

Undiffere Few
ntiated
seller
Oligopoly s

High
barri
ers

No
govt.
price
regul
ation

Differenti Few
ated
seller
Oligopoly s

Natural
Only
Monopoly one
Company seller

Pure
Only
Monopoly one
seller

Yes,
state/l
ocal
govt.
regul
ates
price
None,
but
firm
has
some
pricin
g

stylists,
etc.

No

Steel,
contrac
t
constru
ction

No,
price
not at
min. of
ATC

Beer,
soft
drinks,
vehicle
s, etc.
Possi
ble,
depen
ds on
how
price
is
regula
ted

Local
electric
power

Alcoa
(histori
c)
many
firms in
small,
local

freed
om

mkts.