Market Structures

What is market structure?

• How different industries are classified and differentiated based on their degree and nature of competition for goods and services

• Place where parties can gather to facilitate exchange

• The arrangement of and relations between the parts or elements of something complex.

• How different markets are build from start to finish.

List two types of market structures

Characteristics of perfect Competition all expect

• No transaction cost

• Many buyers and sellers

• Price bias

• Company makes similar products

In a perfect competition all the sellers of the market are small sellers in competition with each other.

• True

• False

What is a monopoly market structure?

• theoretical condition

• small firms

• single seller, selling a unique product.

• large buyers and sellers

Examples of Monopoly market?

i) JPS

ii) Google

iii) Facebook

iv) National Water Commission

v ) KFC

• i, ii, iii & iv

• ii, iii & v

• i & v

• All of the above

Is no transaction cost a characteristic of monopoly market?

• True

• False

List three characteristics of monopoly

In a monopoly market, the seller faces no ______________.

• complain

• worries

• demand

• competition

All sellers in the perfect competition are ________________ sellers.

• medium

• large

• small

• extra large