1. Market Structures

2. Perfect Competition Many Buyers & Sellers
Sellers Offer IDENTICAL Products
Buyers are well informed about products
Sellers can enter/exit market easily
EXAMPLE - Agriculture

3. Monopolistic Competition
Same as Perfect Competition
BUT, Sellers offer DIFFERENT Products
Examples: Jeans, Cola

4. Oligopoly Only a few large sellers
Sellers offer Similar/Identical Products
Sellers cannot enter the market Easily
Top 3 or 4 Sellers Produce 70%+ of total market output
Examples: Cars, Cereal
*Cartel* - When Companies openly organize price setting (Collusion)
Tacit Collusion - Collusion through no formal agreement

5. Monopoly There is a single seller No close substitute goods
Other sellers cannot enter the market easily
Examples: Time Warner Cable - LES

6. Types of Monopolies
1. Natural Monopoly – The sellers’ large scale allows it to use its human, capital and other resources most efficiently – Cable & Electric companies
2. Geographic Monopoly – When a monopoly forms due to its geographic location – General Store in a remote town

7. Types of Monopolies
3. Technological Monopoly – Inventions that can create a new product can give a company a tech. monopoly – General Dynamics is the only company with the technology to make Trident Submarines for the US NAVY – Patents (20 years) & Copyrights
4. Government Monopoly – Providers of goods and services that enhance the general welfare, they usually have public support – Roads, Bridges & Canals