1. Intro to Market Structures
By: Ben Quick

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 market.

4. Characteristics of Pure Competition
Large Market – numerous sellers and buyers
Same Product – No differentiation
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 – 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 single farmer can impact prices – prices are set by the market

6. Questions?