JUREME A.

SARAJENA, BSED IV

Types of Market Structures

1. Perfect Competition - the situation prevailing in a market in which buyers and sellers are
so numerous and well informed that all elements of monopoly are absent and the market
price of a commodity is beyond the control of individual buyers and sellers.
2. Monopoly - the exclusive possession or control of the supply of or trade in a commodity
or service.
3. Monopolistic Competition - is a middle ground between monopoly and perfect
competition (a purely theoretical state), and combines elements of each.
4. Oligopoly - a state of limited competition, in which a market is shared by a small number
of producers or sellers.

Characteristics of Market Structure

1. Perfect Competition
• Large number of sellers
• Identical products
• Easy entry / Exit
• NO Market Power
2. Monopoly
• Single Seller
• Unique Products
• Impossible Entry
• COMPLETE Market Power
3. Monopolistic Competition
• Large number of sellers
• Differentiated products
• Easy entry / Exit
• SMALL AMOUNT of Market Power
4. Oligopoly
• Small number of sellers
• Differentiated or Identical Products
• Difficult Entry
• LARGE AMOUNT of Market Power