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Market Structures October 21, 2008

Posted by petrarcanomics in The Firm Under Perfect Competition.
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There are four basic market structures with a variety of distinct characteristics. These market structures are called perfect competitors, monopolistic competitors, oligopolies, and monopolies.

Perfect Competitor: The perfect competitor is comprised of many firms, sells a homogeneous product, and is a very easy market to enter.

Monopolistic Competitor: Monopolistic Competitors also have many firms, but have a differentiated product, and is a relatively easy market to enter.

Oligopolies: Oligopoly industries contain few firms, have a homogeneous or differentiated product, and has many barriers that make it difficult to enter.

Monopolies: A monopoly contains one firm producing the only product of its kind with no close substitute and is virtually impossible to enter.

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