The Firm and Market Structures

1
The Firm and Market Structures
2
Four Market Structures

• Perfect Competition
• Pure Monopoly
• Monopolistic Competition
• Oligopoly
• Which market Structure do you think is most
  prevalent in the U.S. economy today? why?

3
Structure Identification

• 1. Write the name of a specific firm.
• 2. Identify one product or service that this firm
  sells.
• 3. Identify the other firms that compete with
  your selected firm.
• -None?
• -Few?
• -Many?

4

• 4. Is the product that the competing firms sell
  exactly like your firms or just a little bit
  different?
• 5. How easy is it for me to start a similar firm?

5
Three Points to Determine the Market Structure of
an Industry

• 1. The number of firms in the industry.
• 2. The nature of the product
• -Homogeneous
• -Differentiated
• 3. Ease of entry.

6
Different Types of Market Structures