Market Structure

The Features ‧numbers of sellers and buyers. ‧nature of products, e.g., whether they are homogeneous or differentiated ‧ease of entry and exit ‧availability of information .

Classification Perfect competition Monopolistic competition Market structure Oligopoly Imperfect competition Monopoly

MONOPOLY

Student A…… Student B…… Aside………... Choose three Winnie Poohs to be the actors: Student A…… Student B…… Aside………...

One day, student A met student B on the street… Am…it’s because I feel great pressure from my working environment. Hi! B. Why do you look so upset?

Let us go to Landau Island So, S Student A suggested student B to go to Landau Island. So that they could visit the temple. Oh! It’s a good idea! Let’s go! Let us go to Landau Island to have a happy hour! So you can relax~~

As a result, student A and student B went to Landau Island with their friends. Ha ha…

They went from Tai Po by KCR, MTR to Tsai Sha Chu. And they went to Landau Island by ferry.

And they decided to go to temple by bus. But when they arrived at the bus stop, the bus went away. OH! The bus…

This is called government franchise Apart from the bus, we can go by taxi and on foot. But it is too expensive to take a taxi. But we need to take 3 hours on foot. Why there is no other bus companies established to provide the bus services in Landau Island? It is because the government only allow the NLB to provide the bus services from Mui Wo to temple. The other bus companies are not allowed. This is called government franchise

Oh! I understand now.You are so clever. It is monopoly in the market. The NLB must earn a lot of money. I don’t know. It’s difficult to know the NLB’s profits. Apart from that, they still need to face the other competitors. E.g., taxi… Oh! I understand now.You are so clever.

After a hours, they can get on the bus. Yeah!! end

The Characteristics (1) There is only one seller in the whole industry.

(2)There is no close substitute for its product.

(3)Entry to the industry is extremely difficult or even impossible

(4)Market information is highly restricted.