Market Structure

• Perfect Competition:

  • many sellers
  • homogeneous
  • no market power
  • easy entry/exit
  • perfectly elastic
• Monopolistic Competition:

  • many sellers
  • heterogeneous
  • small market power
  • easy entry/exit
  • relatively elastic
• Oligopoly:

  • few sellers
  • large market power
  • difficult to enter
  • requires a huge amount of capital
  • relatively inelastic
• Monopoly:

  • single seller
  • complete market power
  • no close substitute
  • perfectly inelastic