Market Structure Review

1. Microeconomics
Market Structure
Review

2. Four Types

3. Four Types
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly

4. Four Types

5. Four Types
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly

6. Four Types

7. Four Types
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly

8. Perfect Competition

9. Perfect Competition
No market power
Flat demand curve
Commodity
MC = MR

10. Monopoly

11. Monopoly
Some market power
Downward demand curve
MR steeper than Demand
Barrier to Entry
MC = MR

12. Three types of Monopoly

13. Three types of Monopoly
One Price
Two Price - Coupon
Multiple Prices -
Discrimination

14. Monopolistic Competition

15. Monopolistic Competition
Start as monopoly but end
as perfect competition
Demand flattens
Lose market power

16. Monopolistic Competition

17. Monopolistic Competition
Brands
MC = MR

18. Oligopoly

19. Oligopoly
Two Firms
Game Theory
Prisoner’s Dilemma

20. Sellers have the most
market power in which
market structure?

21. Sellers have the most
market power in which
market structure?
Monopoly with Price
Discrimination

22. Sellers have the least
market power in which
market structure?

23. Sellers have the least
market power in which
market structure?
Perfect Competition

24. Most sellers exist in which
market structure?

25. Most sellers exist in which
market structure?
Monopolistic Competition
or
Brand Competition

26. Sellers worry most about
other sellers in which
market structure?

27. Sellers worry most about
other sellers in which
market structure?
Oligopoly

28. Why can a monopolist
charge more?

29. Why can a monopolist
charge more?
Market Power
Less competition
Price Maker