ECN 104 Chapter Notes -Economic Equilibrium, Economic Surplus, Diminishing Returns
Document Summary
Perfect competition: a market structure in which a very large number of firms produce a standardized product. Monopoly: a market structure in which one firm is the sole seller of a product or service. Monopolistic competition: a market structure in which a relatively large number of sellers produce differentiated products. Oligopoly: a market structure in which a few large firms produce homogenous or differentiated products. Imperfect competition: the market models of monopoly, monopolistic competition, and oligopoly considered as a group. Characteristics of perfect competition and the firm"s demand curve. Very large numbers- a basic feature of a perfectly competitive market is the presence of a large number of independently acting sellers offering their products in large national or international markets. Standardized product- firms in a perfectly competitive industry sell standardized products, they make no attempt to differentiate their products and do not engage in other forms of nonprice competition.