ECON 1201 Lecture Notes - Lecture 1: Monopolistic Competition, Oligopoly
23 Sep 2020
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Document Summary
A market structure where competition is at its greatest possible level. Many firms sell similar products and profits are virtually non-existent due to fierce competition. A market structure where many competitors sell slightly different products. In turn, they compete on factors other than price; such as quality, and reliability. Can only be a monopoly in the short-term until others start making similar products: many competing firms, similar products sold, equal market share, buyers have full information, ease of entry and exit. A market structure characterized by a single seller, selling a unique product in the market. Seller faces little to no competition, as he is the sole seller of goods with no close substitute. Seller sets the price for goods at convenience. 3 types, natural, unnatural and state: high costs scare competition, low potential profits, ownership of a key resource, patents, restrictions on imports, baby markets, local (only restaurant in town)
