Mariano Marcos State University

Department of Economics
A.Y. 2021-2022
Second Semester

Course: ECN 31 (Intro to Microeconomics)

Instructor: John Wel B. Pascua

Understanding the Market Structures

Fill in the table with the correct information. Identify the characteristics common to all these type of market
structure. (60 points)

Characteristics Market Structures

Pure Monopoly Oligopoly Monopolistic
Competition Competition
Number of Sellers Very many One Few Many

Type of Product Sold Standardized Unique, no close Standardized or Differentiated

substitutes differentiated

Condition of Entry Very Easy, no Blocked Significant Relatively Easy

Barriers Barriers

Control Over Price None A lot A lot with Some, depends on

 (price takers) collusion, limited product
with mutual differentiation
interdependence
Presence in the Economy Perfect Monopolies can make Oligopolies can When multiple
competition, a lot of money by be found all companies offer
according to raising prices, throughout the products that are
economic theory, limiting the supply of world, and they similar but not
occurs when all their products, appear to be identical,
companies sell limiting the growth of growing in some monopolistic
identical items, production capacity, industries. Unlike competition ensues.
market share has preventing the a monopoly, These businesses,
no bearing on introduction of new, where a single unlike monopolies,
price, companies heaper products, and company controls have minimal
can enter and quit directing technical a market, an capacity to limit
without research toward the oligopoly is made supply or raise
hindrance, development of up of a small prices to increase
purchasers have products and number of profits.
perfect or technologies that do enterprises that
complete not only not reduce together have
information, and costs, but sometimes great influence
companies cannot even increase them. over a market or
set prices. As a result, market sector
monopolization is
responsible not only
for the divergence of
prices from the value
of goods, but also for
the real increase in
the cost of social
production.