Fundamental elements of the four major market

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Here is a copy of Table 10.1 from the textbook. This table describes some of the fundamental elements of the four major market models: pure competition, monopolistic competition, oligopoly, and pure monopoly.  Like a lot of things in economics, one or more of these market models may exist only in theory.  Others, like oligopolies, are quite common.

Characteristic  

Pure Competition

Monopolistic Competition

Oligopoly

Pure Monopoly

Number of firms

A very large number

Many

Few

One

Type of product

Standardized 

Differentiated

Standardized or 
differentiated

Unique; no close substitutes

Control over price

None

Some, but within rather narrow limits

Limited by mutual interdependence;
considerable with
collusion

Considerable

Conditions of entry 

Very easy, no obstacles

Relatively easy

Significant obstacles

Blocked

Nonprice competition  

None

 Considerable emphasis on advertising, brand names, trademarks

Typically a great deal, particularly with product differentiation

Mostly public relations advertising

Examples

Agriculture, commodities like gold or silver - the stock market (NYSE)

Retail trade, dresses, lots of companies

Steel, automobiles, farm 
shoes implements, many
household appliances

Local utilities, most parts of Government

Can you think of industries that operate in each of these four market models?  What about the airlines? Auto makers? Software companies? Mobile phone carriers? Mobile phone makers? Uber? Google? Ford? Walmart? Snapchat? Or do some of the above market models exist only in theory?

Is there an industry in the town where you live (say retail food) that operates in the pure competition market model? Or another example?

Reference no: EM133063710

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