Name: Mansawie Saud

Section: FIEDLER (Set B)

ECONOMICS SPECIAL PT

1. Research about the 4 different market structures such as the Perfect Competition,
Monopoly, Oligopoly and Monopolistic Competition.
Answer:
KIND OF MARKET STRUCTURE:
 Perfect Competition - this refers to a market structure where there are many buyers
and sellers. Since there are many participants, none of them can cause changes in
prices and quantities of goods and services.
 Monopoly - refers to a market structure where there is only one(1) seller that represents
the whole industry. If sellers are “price takers” in pure competition, a monopolist, on the
other hand, is a “price maker”.
 Oligopoly - is a market characterized by a small number of firms that exert significant
influence over a particular market/sector. To better appreciate this market structure type,
the focus will be given to the oligopoly in a perfect collusion, where there is a dominant
player and products are homogenous. Competitor s in this kind of a structure collude
and are called “players”. Either they play as one team or they play in different teams.
There are few sellers that prefer to make alliances than to compete.

Collusion requires an implied agreement between large firms to restrict output and achieve
the monopoly price. A group of firms that have a formal agreement to collude to produce the
monopoly output and sell at the monopoly price is called a cartel.

In a duopoly, the market consists of two (2) sellers who have a high level of competition
against each other. However, it is best if they work together rather than compete with each
other; or they can just work together and pretend they are competing with each other.

 Monopolistic Competition - this refers to a market structure that has different products
with many sellers. Products belonging to the same industry seem to be identical but they
are not. Hair shampoos are an example. Though they have the same purpose in
personal hygiene, each brand is different because they have different compositions and
different target customers.
2. Give at least 3 examples of companies belonging to each type of market structure.
Answer:
 Perfect Competition
-Amazon Company
-Uber
-ADAMCO Company
 Monopoly
-Metro Rail Transit (MRT)
-Davao Light and Power Co.
-Davao City Water District (DCWD)
 Oligopoly
-Philippine Airline
-Walt Disney
-Toyota Motor Corp.

 Monopolistic Competition
-Burger King
-McDonald’s
-Starbucks

3. Identify the following per market structure:

- number of sellers
- common problems faced by the industries belonging to each market structure
- strategies used to address the problems
Answer:
 Pure Competition - The usual problem that a competitor faces is how to survive and
how to get a fair market share. In order to be competitive; one has to adjust the size of
his/her business to achieve the most efficient plant size. This is attained by adding more
labor inputs until the best combination of labor and capital is experienced.
 Monopoly - The usual problem that a monopolist faces is the lack of improvement of its
product or service. This problem occurs because the monopolist lacks the foresight to
become efficient due to the absence of competition. The best way to solve this problem
 is by seeking help from the government so that in this way the government can help in
controlling the proper consumers association with those monopoly companies.
 Oligopoly - The problem faced here is the existence of barriers to entry where a
competitor finds it hard to enter the industry because of the initial capital requirement.
Although it’s a good idea to be able to have more sellers and producers; the task for the
players to enter the industry is extremely difficult. I believe that the effective way to solve
this is by negotiating with different effective investors so that the company can keep up
with the capital requirements.
 Monopolistic Competition - The common problem that a monopolistic competitor faces
is how to be unique and different from its competitors. One of many ways to solve this
problem is by trying to figure out and formulate the best features that your product can
offer to the customers so that you can be distinguished from different companies in your
chosen industry.