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Market Structure

The document outlines different market structures - perfect competition, monopoly, oligopoly, and monopolistic competition - and summarizes their key advantages and disadvantages. Perfect competition has the advantage of many buyers but the disadvantage of many rivals. A monopoly has no competition but is difficult to enter. Oligopoly has a small number of competitors making comparison easier but requires large capital. Monopolistic competition can innovate but has increased business expenses.

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86 views1 page

Market Structure

The document outlines different market structures - perfect competition, monopoly, oligopoly, and monopolistic competition - and summarizes their key advantages and disadvantages. Perfect competition has the advantage of many buyers but the disadvantage of many rivals. A monopoly has no competition but is difficult to enter. Oligopoly has a small number of competitors making comparison easier but requires large capital. Monopolistic competition can innovate but has increased business expenses.

Uploaded by

dodskie1432
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Market Structure Advantage Disadvantage

Perfect The advantage of the perfect The disadvantage of the perfect


Competition competition is they have large competition is that you will have
number of buyers. And they many rivals in the market. The
can earn a huge amount of customer cannot differentiate the
profit since they have a large product that you are selling to
number of buyers. another competitors. For
example, you are selling fruits the
and the other competitors selling
fruit the customer cannot
differentiate the difference of the
fruits that you are selling and the
fruits of the competitors.
Monopoly The advantage of monopoly is The disadvantage of the
that there is no competition. monopoly is that you will find it
Since you are the one who is hard to enter in the market.
selling that kind of product.
Oligopoly The advantage of the oligopoly the disadvantage of the oligopoly
is having only a number of is they need a large amount of
companies that offer the goods capital. And the other rivals limit
or service that you are trying to the new firms from entering in the
find makes it simple to business.
compare between them and
select the most excellent
choice for you. In other markets
it can be difficult to completely
look at all of the rivals to
compare pricing and services
offered.
Monopolistic The advantage of monopolistic Since they going to innovate their
Competition competition is they can product, to add feature in the
innovate their products to product, or to advertise their
standout in the market or to product it will increase the
add feature to be known in expenses of the business.
public. They can easily
advertise their product.
Escamilla, Roger H

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