Lecture # 7
• Market = group of buyers and sellers
• There are 4 types of market structure:
o Perfect competition
There are lots of buyers and lots of sellers.
No individual firm has the ability to set a price.
1 seller, not very common.
o Monopolistic Competition
Lots of buyers and lots of sellers, but the goods are not identical.
• Quantity Demanded (Q : the amount of a g