Market Types

MyEconLab Concept Video

The four market types are

  • Perfect competition

  • Monopoly

  • Monopolistic competition

  • Oligopoly

Perfect Competition

Perfect competition exists when

  • Many firms sell an identical product to many buyers.

  • There are no barriers to entry into (or exit from) the market.

  • Established firms have no advantage over new firms.

  • Sellers and buyers are well informed about prices.

These conditions that define perfect competition arise when the market demand for the product ...

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