This document discusses different types of markets including product markets, resource markets, and competitive markets. It describes four types of market structures: monopoly, oligopoly, monopolistic competition, and perfect competition. These are categorized based on the number of firms, level of power, product differentiation, and ease of entry/exit. Perfect competition has many small firms with identical products and free entry/exit. Monopolistic competition has many firms with differentiated products and low barriers to entry. Oligopoly has a few dominant firms with significant control over price. Monopoly has a single firm with no substitutes and high barriers to entry.

1. Demand &SupplyCOMPETITIVE MARKETScreated for:IB Economicsbuilding on the work of:Jason Welker

2. The Market

3. marketThe Nature of Markets

4. a place where buyers and sellers come together and exchange goods &servicesmarketThe Nature of Markets

5. like the butcher, the grocerystore, or the internetmarketThe Nature of Markets

6. they can be local, national, and also internationalmarketThe Nature of Markets

7. they can be local, national, and also internationalmarketCan you give an example of each type of market?The Nature of Markets

8. they fall into two categories:productmarketsorresourcemarketmarketThe Nature of Markets

9. product marketThe Nature of Markets

10. is the purchase of consumer goods & services directly from the producersproduct marketThe Nature of Markets

11. product marketlike a computer fromThe Nature of Markets

12. product marketor an The Nature of Markets

13. product marketfrom a farmerThe Nature of Markets

14. resource marketThe Nature of Markets

15. is the purchase of the factors of production: land, labor, capital, and entrepreneurship by businesses of individuals and familiesresource marketThe Nature of Markets

16. resource marketlike trees from a family owning a forestThe Nature of Markets

17. CompetitiveMarkets

18. is one with a large numbers of buyers and sellers, limiting the power of a single firmcompetitivemarketsThe Nature of Markets

19. they bring about diversity of goods, efficiencies, and a general greater wealthcompetitivemarketsThe Nature of Markets

20. markets are “free” when they can openly attempt to win business away from otherscompetitivemarketsThe Nature of Markets

21. Market Structures

22. 4 types of market structure:market structuresThe Nature of Markets

23. 4 types of market structure:monopoly| oligopolymonopolistic competition perfect competitionmarket structuresThe Nature of Markets

24. 4 types of market structure:monopoly | oligopolymonopolistic competition perfect competitionmarket structuresThe Nature of Markets

25. 4 types of market structure:monopoly | oligopolymonopolistic competition perfect competitionmarket structuresThe Nature of Markets

26. 4 types of market structure:monopoly | oligopolymonopolistic competition perfect competitionmarket structuresThe Nature of Markets

27. 4 criteria are used to categorize# of firms | firm’s level of power | product differentiation between firms | ease of entry and exitmarket structuresThe Nature of Markets

28. 4 criteria are used to categorize# of firms | firm’s level of power| product differentiation between firms | ease of entry and exitmarket structuresThe Nature of Markets

29. 4 criteria are used to categorize# of firms | firm’s level of power| product differentiation between firms| ease of entry and exitmarket structuresThe Nature of Markets

30. 4 criteria are used to categorize# of firms | firm’s level of power| product differentiation between firms|ease of entry and exitmarket structuresThe Nature of Markets

31. perfect competitionThe Nature of Markets

32. very few firmsperfect competitionThe Nature of Markets

33. very few firmsfirms don’t influence supplyperfect competitionThe Nature of Markets

34. very few firmsfirms don’t influence supplyfirms make identical productsperfect competitionThe Nature of Markets

35. very few firmsfirms don’t influence supplyfirms make identical productsentry & exit easyperfect competitionThe Nature of Markets

36. is quite theoretical, though commodities markets(such as corn, wheat, etc.) do come closeperfect competitionThe Nature of Markets

37. monopolistic competitionThe Nature of Markets

38. many firmsmonopolistic competitionThe Nature of Markets

39. many firmsfirm’s decisions barely effect marketmonopolistic competitionThe Nature of Markets

40. many firmsfirm’s decisions barely effect marketrelatively different goodsmonopolistic competitionThe Nature of Markets

41. relatively low barriers to entrymonopolistic competitionThe Nature of Markets

42. monopolistic competitionThe Nature of MarketsCan you give an example of a type of company that would fit this description?

43. oligopolyThe Nature of Markets

44. few dominant firmsoligopolyThe Nature of Markets

45. few dominant firmssignificant control over priceoligopolyThe Nature of Markets

46. few dominant firmssignificant control over pricesame or different productsoligopolyThe Nature of Markets

47. few dominant firmssignificant control over pricesame or different productsbarrier to entry higholigopolyThe Nature of Markets

48. few dominant firmssignificant control over pricesame or different productsbarrier to entry higholigopolyThe Nature of Markets

49. oligopolyThe Nature of MarketsWhat real-world firms represent an oligopoly?

50. monopolyThe Nature of Markets

51. only one firmmonopolyThe Nature of Markets

52. only one firmfirm sells to whole marketmonopolyThe Nature of Markets

53. only one firmfirm sells to whole marketno substitute products existmonopolyThe Nature of Markets

54. only one firmfirm sells to whole marketno substitute products existhigh barrier to entrymonopolyThe Nature of Markets

55. market structure & powerThe Nature of Marketsmost market powermonopolyoligopoly competitionleast market powermonopolistic competitionperfect competition