APPLIED

ECONOMICS
LESSON
4
REVIEW
 WHAT IS
MARKET
STRUCTURES
?
MARKET STRUCTURES
 (also called market
 describes
forms) the state of a
market with regards to
competition or the actual
settings in the market.
MARKET STRUCTURES
 MARKET STRUCTURES
 It also refers to the
organizational characteristics
that establish interrelationships
between the buyers and
sellers of a particular market.
COMPETITION
 is rivalry among
many sellers in a
particular market.
 MARKET
 has impersonal competition among
sellers who compete to sell their
goods and services among
purchasers who use their
purchasing power to acquire the
availability of products.
 PRICE COMPETITION
 This is a type of market form in which there are more
firms that sell the same products or render services and
no one has enough market power to be able to set prices
on the product or service without losing business as the
conditions for perfect competition are strict, there are only
a few markets that are considered to be perfectly
competitive thus this market form only exist to compare
with other market forms.
 PRICE COMPETITION
 A perfectly competitive market
assumes a huge number of
companies to sell the same products.
We call these companies "price
takers" because they have no market
power or ability to control prices.
 CHARACTERISTICS
1) Large number of buyers and
sellers
2) No barriers to entry and exit
3) Perfect information
4) Price taker
 The
IMPERFECT
MAJOR
MARKET
FORMS
 A. Monopoly
is a precise form of market structure. A
monopoly occur when only one person
or enterprise is the only supplier of a
particular good. Thus, monopolies are
characterized by no competition within
the market producing a good or service.
 CHARACTERISTICS
1) Profit maximizer: Due to
lack of competitors, the
business/ firm can
maximized their profit and
earns high.
 CHARACTERISTICS
2) Price maker: the business
owner also set the price of
the goods and services
offered at his/ her own
preference.
 CHARACTERISTICS
3) High barriers to entry:
other sellers are unable to
enter the market because
of some reasons.
 CHARACTERISTICS

4) Single seller: only one

seller can participate in
the market activities.
 B. Monopolistic Competition
A market structure which has large
number of firms who offer
differentiated products. It is easy to
enter/ exit in the market. It is
characterized both perfect competition
and monopolistic competition.
 B. OLIGOPOLY
It is a form of market structure in
which there are only few firms
producing products that range
from slightly differentiated to highly
differentiated.
 B. OLIGOPOLY
It is an a form of market structure
in which there are only few firms
producing products that range
from slightly differentiated to highly
differentiated.
 PT
NO.1