Types of competition

1. VILNIUS UNIVERSITY
KAUNAS FACULTY OF HUMANITIES
Types of Competitions
Student: Gediminas Urbonas VI3
Teacher: Dileta Aleksendravičienė

2.  Monopolistic Competition
 Oligopoly
 Monopoly
 Perfect Competition
 Summary
Contents

3.  There are many producers and many consumers in
the market, and no business has total control over the
market price.
 Consumers perceive that there are non-price
differences among the competitors products.
 There are few barriers to entry and exit.
 Producers have a degree of control over price.
Monopolistic Competition
Monopolistically competitive markets have the following
characteristics:

4.  Product differentiation
 Many firms
 No entry and exit cost in the long run
 Independent decision making
 Some degree of market power
Major characteristics

5.  In many markets, such as toothpastes and toilet
paper, producers practice product differentiation by
altering the physical composition of products, using
special packaging, or simply claiming to have superior
products based on brand images or advertising.
Examples

6.  An oligopoly is a market structure in which a few
firms dominate. When a market is shared between a
few firms, it is said to be highly concentrated.
Oligopoly

7.  Ability to set price
 High barriers to entry and exit
 Number of firms
 Long run profits
 Product differentiation
 Perfect knowledge
 Non-Price Competition
Characteristics

8.  Five banks (Barclays, Halifax, HSBC, Lloyds
TSB and Natwest) dominate the UK banking sector,
they were accused of being an oligopoly by the
relative newcomer Virgin bank
 Four companies
(Tesco, Sainsbury's, Asda and Morissons) share 74.4%
of the grocery market
Examples

9.  A situation in which a single company or group owns
all or nearly all of the market for a given type of
product or service.
Monopoly

10.  Price Maker: Decides the price of the good or product
to be sold.
 High Barriers: Other sellers are unable to enter the
market of the monopoly.
 Single seller: In a monopoly, there is one seller of the
good that produces all the output.
 Price Discrimination: A monopolist can change the
price and quality of the product.
Characteristics

11.  Examples of monopolies include:
 Local telephone service
 Water service
 Cable television
 The U.S. Postal Service
Examples

12.  Perfect competition (sometimes called pure
competition) describes markets such that no
participants are large enough to have the market
power to set the price of a products.
Perfect competition

13.  A large number buyers and sellers
 No barriers of entry and exit
 Perfect factor mobility
 Zero transaction costs
 Homogeneous products
characteristics

14.  Corn,wheat and other similar products
Examples

15. Conclusion

16.  https://www.youtube.com/watch?v=8a3gXThQeK0
 https://www.youtube.com/watch?v=r2Ueg6sjWAc

17. Thanks for your attention!