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Comparing Market Structures

This is a comparative table of the four different market structures:

 

  Perfect Competition Monopoly Monopolistic Competition Oligopoly
Number of firms Many One Many Few
Freedom of entry Free Limited or blocked Free Restricted
Nature of Product Homogeneous Unique Differentiated Undifferentiated or differentiated
Implications for demand curve Horizontal Downward sloping, relatively elastic Downward sloping, relatively elastic Downward sloping, relatively inelastic
Average size of firm Small Big Small Big
Possible consumer demand Mediumelastic Highelastic Mediumelastic Highinelastic
Profit making possibility Profit in the short-run, no profit in the long-run Profit in both short- and long-runs Profit in the short-run only Profit in short and long runs
Government Intervention No There is very big possibility No Yes, there is a possibility
Possibility of price change No, they are price-takers Yes, it is a price-maker Very small possibility Relatively big possibility
 

Below are graphs representing demand, supply and other costs and revenues curves for each type of the market structures:

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

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