1. Tuesday, March 1, 2016
Objective: Students will be able to describe and give examples of perfect competition and monopolistic competition. Purpose: Understanding the structure of markets will make you a better consumer.

2. Pure Competition
Pure Competition: a large number of firms all produce the same product and no single seller controls supply or prices
All firms sell the same product for the same price
The market is always in a state of equilibrium
The market provides the buyer with full information about the features of the product and its price

4. Monopolistic Competition
Has the same conditions as pure competition except for products being identical
Products are very similar but have unique differences such as the brand name, colors, and quality of the product
The word monopolistic the seller’s efforts to convince consumers that its product is unique enough to be worthy of a higher price.

5. Monopolistic Competition
Large number of firms
Characterized by product differentiation
Mainly done through advertising
Limited control over prices
Easy to enter and exit the market

6. Oligopolies
Oligopoly: a few firms dominate a market and have the ability to affect prices
Less competitive than monopolistic competition
Oligopolic firms are often very large and very similar in what they offer to consumers

7. Oligopolies Very difficult to enter the market Some advertising
Expenses from nonprice competition are passed onto consumers, resulting in higher prices than in monopolistic competition
Competition between Oligopolies
Regularly release new versions of products