1. Market Structures

2. Monopoly  Single seller of a product dominates market  “price makers”/”price setters”  Barriers to entry high  Most newspapers, Most cable TV  Single seller of a product dominates market  “price makers”/”price setters”  Barriers to entry high  Most newspapers, Most cable TV

3. Oligopoly  More than one seller of a product  Market dominated by a few firms  Firms mutually dependent  TV networks, recording industry, movie studios, radio  More than one seller of a product  Market dominated by a few firms  Firms mutually dependent  TV networks, recording industry, movie studios, radio

4. Monopolistic Competition  Many companies offer similar products  Firms try to differentiate products  Price set by market and firms  Barriers to entry lower  Magazines  Many companies offer similar products  Firms try to differentiate products  Price set by market and firms  Barriers to entry lower  Magazines

5. Perfect Competition  Many sellers offer same product  No firm dominates market  No barriers to entry  “price takers”  Many sellers offer same product  No firm dominates market  No barriers to entry  “price takers”