This presentation will expose students to critically classify features of the 4 classic market types. At the end, students are tasked to tabulate as synthesis of their understanding

1. Market Structures
DR. MATEO D. MACALAGUING JR.
Associate Professor III
UMAK

2. Market Structures
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3 4

3. Market Structures

5. Number of Sellers
•one
•few
•many

6. Number of Buyers
One
Few
Many

7. Type of goods
produced
•unique
•homogenous-identical
•homogenous-differentiated
•no close substitute

8. Extent of non-price competition
• controlled
• no control
• limited control
• non-price
• independent

9. Barriers to entry
• very difficult
• no barriers at all
• not so easy

10. Perfect
Competition
Monopolistic
Competition
Oligopoly
Monopoly
Market control
Number of competitors
greater
more

11. Perfect Competition

12. Many sellers!

13. Homogenous products

14. Perfect Competition
No price control!

15. Perfect competition
No barriers at all
No technical and financial
requirements

16. Monopolistic Competition
Many sellers acting independently

17. Homogenous but
highly differentiated products

18. Limited control of price as long as
the seller innovates.

19. Entry of new firms in the market is relatively
easy.

20. Non-price competition is extensive and
prevalent.

21. Monopolistic competition

22. Oligopoly

23. Very few firms dominates the
market.

24. Identical but differentiated
products

25. Cartel- price agreement among
sellers to promote their own
economic interest

26. • Entry of new firms is difficult.
Requires high investment

27. Monopoly

28. One producer/seller

29. Product is unique/ no close
substitute

30. Monopolist is a price maker/ no
direct competitor.

31. Entering the market is very difficult
because:
•Monopolist owns a patent/copyright
•requires high investment

32. Advertising in general is used to
maintain public relation.

33. Your Turn!
Tabulate the TYPES of MARKET and
differentiate their features based on the
following characteristics:
a. number of buyer
b. number of seller
c. type of goods produced
d. price setting
e. barriers/limitations to competition