1. Unit 3- Microeconomics
Market Structures

2. Types of Market Structures
Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly

3. Perfect Competition

4. Perfect Competition Many sellers Easy to enter and exit the market
informed
Identical products
and demand

5. Monopolistic Competition

6. Monopolistic Competition
Easy to enter or exit the market
Limited control over price
Product Differentiation
Nonprice competition
Advertising

7. Oligopoly

8. Oligopoly A few very large sellers Difficult to enter the market
Differentiated products
Price maker
Use collusions & price-fixing
Some advertising

9. Monopoly

10. Monopoly Only ONE SELLER of a particular product No close substitutes
Sets its own market prices
enter the market

11. Types of Monopolies Natural Monopoly Geographic Monopoly
Technological Monopoly
Government Monopoly 12

12. Natural Monopoly
Occurs when it would be too costly, difficult, etc. to have another business offering G&S in that area 13

13. Geographic Monopoly
Occurs when it's the only business selling that G&S in town 14

14. Technological Monopoly
Occurs due to patents or copyrights 15

15. Government Monopoly
Occurs when the government is the sole provider of the G&S 16