PART3

Microeconomics: Market Structure

When firms are competing for your business, you have the advantage. The more firms, the better. With many firms producing a similar product, you get the best price. The competitive market is a healthy market.

Sometimes a firm will buy out its competitors or owns the bulk of a natural resource and is the sole supplier of goods to the market. As a result, it has complete control of the industry. This type of firm is a monopoly. Monopolies disadvantage the consumer because you, as a consumer, will have to accept the price set by the company. There is no choice. You may have a visceral dislike of monopolies, but here you will discover the economic reasons behind your emotional response.

The oligopoly and monopolistic ...

Get Economics now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.