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- Comparison of market structures includes the following types123:
- Perfect competition: Many firms, freedom of entry, homogeneous product.
- Monopoly: One firm dominates the market, barriers to entry, possibly supernormal profit.
- Oligopoly: An industry dominated by a few firms, interdependence of firms.
- Monopolistic competition: Freedom of entry and exit, firms have differentiated products.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Summary
- Market structure refers to how different industries are classified and differentiated based on their degree and nature of competition for services and goods.
corporatefinanceinstitute.com/resources/economic…The market structures perfect competition and monopoly offer theoretical extremes – they rarely exist in their purest forms, but we use these concepts as benchmarks to compare more common structures, such as monopolistic competition and oligopoly. This table summarizes important distinctions among the four market structures.learn.saylor.org/mod/book/view.php?id=29410&cha…Types of market structure
- Perfect competition – Many firms, freedom of entry, homogeneous product, normal profit.
- Monopoly – One firm dominates the market, barriers to entry, possibly supernormal profit. Monopoly diagram
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