The 4 Types of Market Structure Essay - 1598 Words
1. What type of market structure is the supermarket industry? Explain why with reference to Sources 1 and 2 and economic theory. (4 marks) 2. Is it in the interests of Woolworths and Coles to have a price discount war? Why? What would be a better strategy for Coles and Woolworths to take in regards to pricing? (8 marks) 3. What type of market structure is the market for vegetables provided by farmers? Explain why with reference to Sources 1 and 2 and economic theory. (4 marks) 4. How would falling prices for their products due to the price war affect the individual vegetable producer? Demonstrate your answer with reference to a diagram showing only an individual farmer’s cost curves. Would small farmers ECOM4000 Individual Assignment ECOM4000 Economics, Individual Assignment, T3 2015 5 be forced to leave the market in the long-run? Why? (8 marks) 5. If individual farmers made significant improvements in their technologies could they overcome the price falls discussed above and stay in business in the long-run? Support your answer by referring/adding to your diagram in 4 and thinking about costs. (6 marks)
Market structures provide a model with which to compare the characteristicsof real markets. Market structure is defined by three characteristics:Number of competitors in the marketEase of entry of new competitorsThe degree to which competitors' products are the same or different.Teaching Strategy: Some instructors also include in market structure whether competitors act independently or not and consumers' and producers' knowledge of market conditions.Teaching Strategy: Consider drawing a circle representing the world on the board and thendividing the world into four types of market structures. Put perfect competition on the South Pole, suggesting there are probably about as many trulyperfectly competitive markets as people living there. Then add monopolisticcompetition in the Southern Hemisphere and oligopoly in the Northern Hemisphererepresenting most of the markets in the world. Finally, add monopoly to the North Pole and ask whatbenevolent monopolist lives there!
Four basic types of market structure are (1) Perfect competition: many buyers and sellers, none being to prices. (2) Oligopoly: several large sellers who have some over the prices. (3) Monopoly: single with considerable control over and prices. (4) Monopsony: single with considerable control over and prices.Ability to explain the nature of Market Structure Analysis, and to discuss the continuum of "degree of competitiveness." Ability to Identify four types of market structure, and to align them along the degree of competitiveness continuum. Ability to identify and explain key insights that emerge from the study of various market structures. The different types of market structure are; the monopolistic competition also referred to as the competitive market. The oligopoly market (called a duopoly when only two firms exist in the market), a monopsony (there exist only one buyer), the monopoly structure and the perfect competitive market. The types of market structures can be grouped into the perfectly competitive structure and the imperfectly competitive market structure. The imperfectly competitive market structures are the oligopoly, duopoly, monopoly and the monopolistic competition.In a monopoly market structure the prices are prettyÂ stable. This isÂ because there is only one firm involved in the market that sets the prices since there is no competing product. In other types of market structures prices are not stable and tend to be as a result of the competition. Below is an essay on "Classification of the Different Types of Market Structures" from Anti Essays, your source for research papers, essays, and term paper examples.
Market structure can be said to be the classification or composition of the different types of market as described from their unique characteristics of how they choose to allocate prices of commodity in the market. The different types of market structure can be grouped majorly into two main categories the perfect and the imperfect market. Under the perfect market structure we have the perfect competitive market. Under the imperfect market we have the , oligopoly, monopolistic competition and other special categories based on the number of buyers. There are different examples of the different types of market structure based on the special characteristics’ possessed by each type of market structure.