University:
Indiana University South Bend
Course:
BUS-A 201 | Introduction to Financial Accounting
Academic year:

2023
Views:

328

Pages:

1
Author:

Rose G

market structures me characteristics of perfect competition Economists classiry markets based on now competitive they are. A market Structure is an economic model that allows people to examine competition in a certain industry. Perseus competition is the ideal model, it nas s characteristics numerous buyers sellers 2. standardized produces a product ideritical to other products in the same market 3. Freedom to enter/exit markets. ". independent buyers sellers 5. well informed buyers sellers once these conditions are met, sellers become price takers a business that can't set its own prices but accepts the market price competition in the real world •in the real world, there are'nt any perfect competition Market structures that lack one of the five conditions needed are called imperfect.competition -in com, there are millions of other farmers so they have to accept the market price characteristics of a monopoly The least competitive market structure is a monopoly, where only one seller offers a product. Pure monopolies are rare, but several businesses come close. -A career is a formai organization of sellers/producers that agree to set prices and limit output Because a monopoly isn't concerned wien competition when setting prices, it is considered a price maker. Price maker is when they set the prices. Other firms might want to enter an industry, but they face three barriers t entry -large size -government regulations. -special resources/technology similarly, the following are the three characteristics of a monopoly - only one seller - restricted, regulated market -control of prices Types of monopolies A government monopoly exists because the govt. owns the business or only allows one proaucer. A tecnologicor monopoly exists because the firm controls/patents a method, type of technology, or manuractoring method. A geographica monopoщ exists because there aren't other producers in that region.