2. Monopoly
Exist when a single firm that sells in
the market has no close substitutes.
A single seller has control of entire
supply of raw materials
Ownership of patent or copyright is
invested in a single seller
Grant of a government franchise to a
single firm
3. Monopolistic
Allows such variety of choices
ex. A successful executive, who is
shopping for a car, may choose to buy
from Toyota, Honda, MercedesBenz, or
Volkswagen.
- A blend of competition and Monopoly
- Many sellers offer heterogenous or
differentiated products, similar but not
identical and satisfy the same basic
need
4. Oligopoly
Is a market dominated by a small
numer of strategically interacting firms.
Producers of oil from all around the
world can manage to raise prices by
agreeing with each other on what
prices to charge the consumers. Thus,
countries that use a lot of oil have no
choice but to buy from these
producers at high prices.
