Perfect Competition, Monopolistic, Oligopoly, Monopoly Essay

Perfect Competition, noncompetitive, Oligopoly, Monopoly - Essay pillowcasePerfect competitionMany SellersThe perfect competition foodstuff have many sellers. The sellers are capable in the market such and therefore a single decision by a peculiar(prenominal) family in terms of prices, and output attract no impact on the equilibrium prices and quantities in the market.Many BuyersThere are many buyers in the market with perfect information about the prices and quantities. Sellers cannot, therefore, parry the customers based on prices and quantities as the value of represents is determined by the economic forces of demand and supply. tighten are Prices TakersThe firms in the perfect competition markets are price takers. The firm cannot, therefore, sell at contrasting (at) price that the prevailing rates.Homogeneous GoodsThe sellers and buyers in the perfect competition marketing trade in self-coloured goods. The goods sold are similar and thus a seller has no option to sell a t the prevailing prices in the market to cite the normal prices.Perfect InformationThere is complete acquaintance with respect to goods sold, prices and quantities. Sellers cannot manipulate the buyers who attach values to the commodities sold making firms operate under normal prices.No transportation costsThere are no transportation costs in the market. The market expression assumes that sellers only sell around their local markets and so walk into the markets freely with their goods.Free entry and run outThere are no barriers to entry and exit, and this is at the discretion of the sellers. Firms tend to enter the market when it is fortunate and quite during the upheavals. Sellers may switch in between the various homogenous products depending on the one that sells and demanded.Monopolistic competitionThere are many firms with less market share.There are a abundant number of differentiated products a feature that distinguish it from perfect competition market structure. Prod ucts differentiation is in the form of styles, location, pricing strategies, brand name, packaging, and advertisement.The firms enter or leave the market at their discretion.MonopolyThere is cut back entry and exit from the marketMonopolist restricts entry into the firm receivable to increased market spot arising from economies of scale. A single firm may own a fundamental factor input and so locking out others indeed enjoying a greater market share. Due the economies of scale the marginal cost of production declines and reduced total costs of production.A single Seller and Many BuyersIn a monopoly market structure, there is a single seller producing a product with no close substitutes hence synonymous industry and firm. However, the firm benefit from a range of buyers that have no option hence buy at the Monopolys set prices despite restricted quantities.Unique Products (Heterogeneous)The firms in a monopoly market structure produce heterogeneous products. Therefore, there is less competition in the industry, and the firm can make supernormal profits in the short run since there are many buyers.Monopoly is the Price producerThe power possesses a higher degree of market power. The firm was thus able to charge prices at the equilibrium prices by manipulating the quantity of outputs supplied, but still find consumers buying in bulks as the firm is sole in the industry.OligopolySell standardized or differentiated commodities. There are restrictions to entry due to economies of scale