PERFECT

COMPETITION
(farmers)

MONOPOLISTIC
(hairdressers)

OLIGOPOLY
(few firms control
market)

MONOPOLY
(one firm controls
market)

Characteristics:
- many buyers & sellers
- Sellers are price
takers
- Free entry to and exit
from market
- Perfect knowledge
- Homogenous goods
- Factors of production
are perfectly mobile

Characteristics:
> non-homogenous
products (there is
product
differentiation)
> No barriers to entry
and to exit from market
> Firms have some
degree of price setting
power (can raise price
without losing all
customers)

Characteristics:
# High barriers to entry
and exit
# High concentration
ratio (few firms supply
majority market)
# Interdependence
(action of one firms
affect another firm)
# Firms differentiate
their product from
other firms

Characteristics:
~ Profit maximization.
(Super Normal Profit)
~ Sole seller in the
market
~ High barriers to entry
~ Price maker
~ Price discrimination