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Chapters 12-15: Four Market Structure Comparison 20 points
Chapter Assignment Please "Wrap Text" and make sure your rows are wide enough :) Thank you!
Given the categories identified in the first column, what are the specific Market Structure characteristics.
EXTRA CREDIT if you can accurately complete the last 2 rows referring to Economic Profit of the Market
Market Structures => Characteristics Perfect Competition Monopolistic Competition Oligopoly Pure Monopoly
1 Condition of Entry to the Market
2 Firm's Control over the Market
3 Number of Firms
4 Price Elasticity of Demand
5 Product Characteristics
EC Economic Profit in Short Run
Positive, Negative, Zero (can be more than one)
EC Economic Profit in Long Run
Positive, Negative, Zero (can be more than one)
Use these entries to fill lines 1 - 5 (some entries used twice) Small amount of market power Difficult entry More elastic Complete market power
Identical or differentiated product Single seller Identical product Highly inelastic
Unique product No market power Easy entry & exit Price taker
Small # of sellers Large amount of market power Impossible entry Differentiated Product
More inelastic Price maker Large # of sellers Highly elastic
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