Other Market Structures

Monopolistic Competition  Many companies sell products that are similar, but not identical Four Conditions  Many firms  Few artificial barriers to entry  Slight control over prices  Differentiated products

Monopolistic Competition  Non-price Competition Ways, other than price, to attract customers  Physical characteristics  Location  Service level  Advertising, image, or status  Profit is not too high Fierce competition New firms will continue to enter the market

Oligopoly  A few large firms dominate the market Four largest firms produce at least 70-80% of the output  Barriers to entry A lot, but not impossible  Some variety of goods  Some control over prices The top companies can work together to drive up prices  Collusion  Illegal