1. COMPETITION Business Economics

2. Market Structure Nature & degree of competition among firms in same industry. Industry - companies engaged in a particular kind of commercial enterprise. Steel Industry Automobile Industry Textile Industry

3. Four Market Structures I.Perfect Competition II.Monopolistic Competition III.Oligopoly IV.Monopoly

4. I. Perfect Competition Large number of buyers & sellers. Buyers & sellers deal in identical products. Each buyer & seller acts independently. Buyers & sellers are well informed

5. I.Perfect Competition Buyers & sellers are free to enter, conduct, and get out of business. Each individual firm too small to influence price. No Advertising Example: vegetable farming – farmer’s markets.

6. II. Monopolistic Competition Large number of buyers & sellers. Buyers & sellers deal in product differentiation. Each buyer & seller acts independently. Buyers & sellers are well informed. Buyers & sellers are free to enter, conduct, and get out of business.

7. Monopolistic Competition Product Differentiation Non Price Competition Example: jeans, shoes, sneakers, etc

8. Oligopoly Few very large sellers dominate market. Product may be differentiated. Sellers act interdependently. Act together in their pricing behavior. Compete on a non-price basis Example: Tobacco, Cereal, Soda, etc

9. Monopoly One seller of a particular product. Types of monopolies Natural Geographical Technological Government