COMPETITION AND TYPES OF COMPETITION

THE MARKET

PERFECT COMPETITION

MONOPOLISTIC COMPETITION

MONOPOLY

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Place where the sellers of a particular product can meet with the buyers of that product. 1*S_YpplWWEYVH6bDFCiZAtg

¿who decide what to produce?

Suppliers decide which products are produced and at which price.

No barriers to entry

Many consumers buying a standardized product
from numerous small businesses

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Price taker, because of the other prices from other companies.

Many markets producing the same product.

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Companies have limited control over price

Free entry and exit

Companies offering the same products, but with a little difference

Not necessary to be an entire country (geographical area)

LEGAL MONOPOLIES

OLIGOPOLY

Cost of starting a business is usually high, because of the low number of firms entering

Companies some control over the prices

Few sellers in the market.

Products fairy similar

Competitive, so when one companies lowers prices, the others tend to do the same

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Huge barriers of entry

One seller in the market

NATURAL MONOPOLIES

patents allow to have a monopoly in a certain period of time

Barriers to entry

They’re required to serve all
customers

Public utilities

Huge investments

Regulated by the government

Other companies can't produce the same If that's produced before

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Lack of innovation

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