1. Intro to Market Structures

2. Four Types of Market Structures
Pure Competition
Monopoly
Oligopoly
Monopolistic Competition

3. Pure Competition
A market structure where there are so many sellers of the good or service that each accounts for only a small portion of the total market.

4. Characteristics of Pure Competition
Large Market – numerous sellers and buyers
Similar Products – almost identical good or service is sold.
Easy Entry (and Exit) – needed investments are small, easy to learn to produce.
Easy to Get Information – data about prices, quality, or supply is easy to obtain.
*No Control Over Price – the market sets the price.

5. Example: Many Agricultural Products
Thousands of farmers.
Particular products are similar.
Easy to begin or stop farming.
Agricultural info is available to the public.
No singer farmer can impact price – price set by market.

6. Other Market Structures

7. Monopolistic Competition
Market structure where there are many sellers and buyers, but sellers refrain from selling identical products.

8. Characteristics of Monopolistic Competition
Numerous Sellers
Easy Entry
Product Differences
Non-Price Competition
Some Control Over Price
Examples: Soap, Toothpaste, Deodorant

9. Oligopoly
A few large sellers dominate and have the ability to affect prices in the industry.
Examples: Airline Industry, Automobile Manufacturers

10. Pure Monopoly
A situation in which there is only one seller of a specific product that has no substitutes.
Examples: NFL, MLB, NBA, Public Utilities

11. Questions?