MARKET STRUCTURE
TYPES OF MARKET STRUCTURE
Perfect Competition
Monopoly
Monopolistic Competition
Oligopoly
Perfectly
Competitive
Market
• Less market power
• Price takers
• Goods are
homogenous
• Free entry and exit
• Perfect Inf...
Perfectly Competitive Markets
Price Taking
1. The individual firms sells a very
small share of the total market
output and...
Perfectly Competitive Markets
• Product Homogeneity
1. The products of all firms are
perfect substitutes
2. Example
– Agri...
Perfect Information
1. Buyers and sellers have all the
pertinent information necessary
for them to make decisions on
buyin...
Monopolistic Competition
• Imperfect or Monopolistic Competition
–Many buyers and sellers
–Products differentiated
–Relati...
Water Refilling Station
• The 1980s saw
proliferation of
gadgets and
equipment to purify
water.
• The purification was
don...
• The 1990s added the
sophistication of water
purification technology
with the entrance of
bottled water. Raw water
passed...
• Water refilling
stations provided a
cheaper alternative.
More than 3,000
stations are estimated
to have been put up
in t...
Water Refilling Station
• Eventually, services
extended free delivery of
5-gallon containers with
free use of a hot and co...
Monopolistic competition
• There are no barriers to entry. In
other words, there is free entry and
exit.
• There is produc...
The barriers to entry are:
1. Natural
– Scale economies
– Patents
– Technology
– Name Recognition
2. Strategic Action
– Fl...
Examples of oligopolistic
structures:
• Supermarkets
• Banking industry
• Chemicals
• Oil
• Medicinal drugs
• Broadcasting...
MobileCellularPhoneIndustry
Prior to 1995, landline telephone dominated the
telecommunication sector. PLDT was considered ...
Strategic Actions
• Before SUNCELL entered the market,
instead of price being lowered, strategic
actions were being exhibi...
• The Telecommunication industry
(landline) started out as a
monopoly.
• As a whole, the mobile cellular
phone market is a...
• Barriers to entry
1. Control of Inputs
– firm may own the total supply of
a raw material that is essential in
the produc...
3. Patents
– Exclusive rights given to inventors
for a limited period of time.
– AT&T / BELL COMPANY
4. Licenses/Franchise...
• The monopolist is the supply-side
of the market and has complete
control over the amount offered
for sale.
• Limited by ...
Philippine Electric Power Industry
Upcoming SlideShare
Loading in...5
×

Market structure

2,266

Published on

1 Comment
2 Likes
Statistics
Notes
  • Could you help me to compute this one?Pretty please...I really have no idea about this:

    Initially you will have a total of 9 emlpoyees. Except for one office manager who will be paid P15,000/month, the rest will be paid the minimum wage.

    1.Determine the employee & the employer share for SSS, Philhealth and Pag-ibig fund.

    2.Determine the withholding taxes for the employees.



    I will greatly appreciate if you explain it for me so I can fully understand how it come up.(From a student who really wants to learn abot Taxation)
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total Views
2,266
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
127
Comments
1
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "Market structure"

  1. 1. MARKET STRUCTURE
  2. 2. TYPES OF MARKET STRUCTURE Perfect Competition Monopoly Monopolistic Competition Oligopoly
  3. 3. Perfectly Competitive Market • Less market power • Price takers • Goods are homogenous • Free entry and exit • Perfect Information Monopolistic Competition • Many firms • Free entry and exit • Differentiated but highly substitutable product Oligopoly • Small number of firms • Product differentiation may or may not exist • Barriers to entry Monopoly • There is market power • Single seller • One product (limited or no good substitutes) • Barriers to entry TYPES OF MARKET STRUCTURE
  4. 4. Perfectly Competitive Markets Price Taking 1. The individual firms sells a very small share of the total market output and, therefore, cannot influence market price. 2. The individual consumer buys too small a share of industry output to have any impact on market price.
  5. 5. Perfectly Competitive Markets • Product Homogeneity 1. The products of all firms are perfect substitutes 2. Example – Agricultural products
  6. 6. Perfect Information 1. Buyers and sellers have all the pertinent information necessary for them to make decisions on buying or selling goods and services. Perfectly Competitive Markets
  7. 7. Monopolistic Competition • Imperfect or Monopolistic Competition –Many buyers and sellers –Products differentiated –Relatively free entry and exit –Each firm may have a tiny ‘monopoly’ because of the differentiation of their product –Firm has some control over price –Examples – restaurants, professions – solicitors, etc., building firms – plasterers, plumbers, etc.
  8. 8. Water Refilling Station • The 1980s saw proliferation of gadgets and equipment to purify water. • The purification was done mostly at home. • Only simple process of passing tap water through a filter. Monopolistic Competition
  9. 9. • The 1990s added the sophistication of water purification technology with the entrance of bottled water. Raw water passed through 6-8 processes of treatment. • The sophistication, along with packaging, branding, manufacturing costs, led to drinking water being expensive. Monopolistic Competition
  10. 10. • Water refilling stations provided a cheaper alternative. More than 3,000 stations are estimated to have been put up in the country presently. • Initially, customers came to stations with their own containers. Monopolistic Competition
  11. 11. Water Refilling Station • Eventually, services extended free delivery of 5-gallon containers with free use of a hot and cold dispenser provided a minimum weekly consumption is met. • Some stations also sold different types of dispensers and smaller sizes of bottled water.
  12. 12. Monopolistic competition • There are no barriers to entry. In other words, there is free entry and exit. • There is product differentiation. The station claims to offer water treatment different from other stations through different technology. Thus, their treated water supposedly are slightly different from their competitors. • Products are substitutable with one another.
  13. 13. The barriers to entry are: 1. Natural – Scale economies – Patents – Technology – Name Recognition 2. Strategic Action – Flooding the market – Controlling an essential input oligopoly
  14. 14. Examples of oligopolistic structures: • Supermarkets • Banking industry • Chemicals • Oil • Medicinal drugs • Broadcasting oligopoly
  15. 15. MobileCellularPhoneIndustry Prior to 1995, landline telephone dominated the telecommunication sector. PLDT was considered a monopoly back then. In 1995, the Telecommunication Act of the Philippines (RA 7925) was enacted, setting the policy for competition and liberalization of the telecommunication sector. It opened up the paging and the mobile telephone business.
  16. 16. Strategic Actions • Before SUNCELL entered the market, instead of price being lowered, strategic actions were being exhibited to gain bigger shares of the market
  17. 17. • The Telecommunication industry (landline) started out as a monopoly. • As a whole, the mobile cellular phone market is a Oligopolistic market. –Three Major Players –Services are slightly differentiated –There are barriers to entry oligopoly
  18. 18. • Barriers to entry 1. Control of Inputs – firm may own the total supply of a raw material that is essential in the production of some product. – DE BEERS / MERALCO 2. Economies of scale – One supplier can produce at a lower per-unit cost than several smaller firms. monopoly
  19. 19. 3. Patents – Exclusive rights given to inventors for a limited period of time. – AT&T / BELL COMPANY 4. Licenses/Franchises – Granted by the government as a condition for operating in the market. Monopoly
  20. 20. • The monopolist is the supply-side of the market and has complete control over the amount offered for sale. • Limited by Demand Monopoly
  21. 21. Philippine Electric Power Industry
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×