MARKET MODEL CHARACTERISTICS......................................................................................
1)Pure competition:-Very large number of interdependent firms..........................................
-Standardized products.........................................................................
-No control over product price(Price takers)..........................................
-Very easy entry, no obstacles..............................................................
-No nonprice competition......................................................................
-E.g. Agriculture....................................................................................
2)Monopolistic competition:-Many firms...............................................................................
-Differentiated products............................................................
-Some control over product price, but within narrow limits......
-Relatively easy entry..............................................................
-Considerable emphasis on advertising, brand names,trade-
marks
-E.g. Retail trade,shoes..........................................................
3)Oligopoly-Few number of firms..........................................................................................
-Standardized/differentiated products.................................................................
-Limited control over product price ,by mutual inter-dependence; considerable
with collusion
-Entry has significant obstacles.........................................................................
-Great deal of nonprice competition, particularly with product differentiation....
-E.g Steel, auto, farm implements.....................................................................
4)Monopoly:-1 Firm.............................................................................................................
-Unique products, no close substitutes...........................................................
-Considerable control over product price........................................................
-Blocked :no_entry: entry............................................................................................
-Mostly public relations advertising type nonprice competition......................
-E.g. Local utilities..........................................................................................