CH. 9: MARKET STRUCTURE 1. How much COMPETITION is in a MARKET. 2. CRITERIA A. Market Size A. Market Size B. Product Type B. Product Type C. Entry/Exit C. Entry/Exit D. Information D. Information E. Price Control E. Price Control

PERFECT COMPETITION A. Numerous buyers and sellers B. Homogeneous Product (similar/identical) C. Easy to enter and exit D. Information is easy to obtain E. Producer has no control over price (market) F. EXAMPLE: Agriculture

MONOPOLY A. Single seller B. No substitutes C. No entry D. No information E. Producer controls price F. EXAMPLE: Microsoft/Utilities Microsoft/Utilities

MONOPOLISTIC COMPETITION A. Numerous Sellers B. Differentiated Products C. Relatively easy entry/exit D. Obtainable information E. Limited control over price( Mostly consumer) F. EXAMPLE: Food/clothes

OLIGOPOLY A. Few Sellers B. Differentiated product C. Barriers to entry D. Limited information E. Business has significant control over PRICE F. EXAMPLE: soda/pop, automobiles (domestic)

KEY TERMS ( LOOK THEM UP! )  Barriers to Entry  Economies of scale  Patent  Copyright  Product Differentiation  Cartel  Antitrust Legislation  Merger  Conglomerate  Deregulation