This presentation was been used during our report in Applied Economics.

2. Is the interconnected characteristics of a
market, such as buyers and sellers,
degree of freedom in determining the
price, level and forms of competition,
extent of product differentiation and ease
of entry into and exit from the market.

3. LEARNING OBJECTIVES
After studying this chapter, the reader should be able to:
1. Describe a perfect competition
2. Understand why monopoly is considered a
“price maker”
3. Differentiate perfect and monopolistic
competition
4. Describe an oligopoly market
5. Define duopoly

5.  It is a situation in which a
particular market is controlled
by small groups of firms.

7.  Few Sellers
 Homogenous or Differentiated
Products
 Difficult Entry

9.  Is the extreme opposite of
perfect competition. Under a
monopoly, the consumers has
only two choices, (1) buy the
monopolist’s product; (2) none
or not at all.

11.  Single Seller or Producer
 Unique Product
 Impossible Entry

13.  many small competitors carrying
similar products, giving you plenty of
options from which to choose.
 it describes a market structure where
competition is at its greatest possible
level.

15.  Large Number of Small Firms
 Homogenous Products
 Very Easy Entry and Exit

17.  multiple sellers who are attempting to
seem different than their competitors.
 a type of imperfect competition such that
many producers sell products that
are differentiated from one another (e.g.
by branding or quality) and hence are not
perfect substitutes.

18.  In monopolistic competition, a firm takes
the prices charged by its rivals as given
and ignores the impact of its own prices
on the prices of other firms.

19.  In the presence of coercive government,
monopolistic competition will fall into government -
granted monopoly. Unlike perfect competition, the
firm maintains spare capacity. Models of monopolistic
competition are often used to model industries.
Textbook examples of industries with market
structures similar to monopolistic competition
include restaurants, cereal, clothing, shoes, and
service industries in large cities.

20.  The "founding father" of the theory of
monopolistic competition is Edward
Hastings Chamberlin, who wrote a
pioneering book on the subject, Theory of
Monopolistic Competition (1933).
 Monopolistic competition as a market
structure was first identified in the 1930s by
American economist Edward Chamberlin, and
English economist Joan Robinson.

22.  refers to a market situation
comprising of one seller (i.e.,
monopoly) and only one buyer
(i.e., monopsony).

23.  define as a market condition with a
significant degree of seller
concentration (i.e., oligopoly) and a
significant degree of buyer
concentration (i.e., oligopsony).

24.  refers to a market situation in
which there are only two buyers
but many sellers.

25.  a subset of an oligopoly where a
market situation has only two
suppliers.

26.  is a form of buyer concentration,
that is, a market situation in
which a single buyer confronts
many small suppliers.