1. Market Structures: Different Types of Competition

2. Perfect Competition Many buyers and sellers are in the market
Sellers offer identical products
Buyers and sellers are well informed about the products
Sellers are able to enter and exit the market freely.
There is little to no control over pricing.

3. Examples of perfect competition
Agricultural products!

4. Monopoly One company is the only producer of the product
The company has complete control over prices
Subject to strict regulation

5. Monopolistic Competition
Many producers offer goods that are similar to others but can be differentiated from their competitors. There is some control over pricing.

6. Examples of monopolistic competition
Fast food restaurants

7. Oligopoly A market dominated by a few large firms.
It is difficult for other firms to enter the market.
In an oligopoly, there is some variety in products and a lot of control over prices.

8. Examples of Oligolpoly

9. Examples of Oligolpoly

10. The government ensures competition
Prevents monopolies (where 1 company controls an industry)
Does this by passing antitrust laws
Sherman Antitrust Act (1890)- Broke up Standard Oil and AT&T
May be used to prevent mergers (combining 2 or more businesses)
Horizontal and vertical mergers

11. Horizontal mergers
Horizontal Mergers- Businesses in the same industry merge.

12. Vertical Mergers
Vertical Mergers: Related businesses (but not from the same industry) combine to form one firm.

13. “Natural Monopolies”
 a type of monopoly that exists due to the high fixed or start-up costs of conducting a business in a specific industry. 
examples- power, natural gas, and water

14. Name that competition

15. Perfect Competition

16. Monopolistic Competition

17. Oligopoly

18. Perfect Competition

19. Oligopoly

20. Monopolistic Competition