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Market structure comparison table homework assignment

15/10/2021 Client: muhammad11 Deadline: 2 Day

The Market Structures Influence How Price And Output Decisions Are Made By The Firms

The market structures influence how price and output decisions are made by the firms in their respective structure. In all market structures, one of the primary goals is to maximize profits or minimize losses.
One of the major differences between these market structures is how price and output decisions are made, which in turn depends on the characteristics of each market structure. There are four market structures:
1. Perfect competition
2. Monopolistic competition
3. Oligopoly
4. Monopoly
Required:
1. Using Template A, construct a table that describes the various characteristics of each market structure.
2. Identify a firm for each of these market structures and explain why each firm belongs in the market structure identified.
3. Using Microsoft Excel, construct a graph for each of the market structures and explain how price and output decisions are made in each structure and how they differ.
4. How is marginal analysis used in the price and output decisions of firms in the various market structures?
Template A:
Perfect
Competition Monopolistic
Competition Oligopoly Monopoly

Number of Firms
Pricing Decisions
Output
Decisions
Profit

Demand Curve
Ease of Entry
Product Differentiation
Hi Class,

As you respond to the characteristics of various market structures, please be sure to provide market concentration data using the Hirshman-Herfindahl Index and use practical examples and financial information from the respective industries.

Marlo

...The attached doc file is the full assignment and information I found online and in the book. The excel file is work I started on.

Sheet1
Perfect Competition Monopolistic Competition Oligopoly Monopoly
Number of Firms Many Many Few One
Pricing Decisions None/Firms are price takers Moderate/ May have some control as the product is slightly differentiated Moderate to Substantial/ Have price control but depends on its rivals Substantial/Have price control
Output Decisions Optimal output Slightly lower than perfect competition as the demand curve is downward sloping Lowers output for higher profit Monopoly output: produces very less for monopoly profit
Profit Normal Abnormal Abnormal Monopoly
Demand Curve Horizontal Downward sloping Kinked demand curve Downward sloping
Ease of Entry Easy Easy Difficult, many barriers are present Not possible, as they hold a patent or government permit
Product Differentiation Homogenous/ Identical Differentiated Homogenous and sometimes differentiated Single seller- a unique product
Perfect competition: Agricultural Crops Monopolistic competition: Private schools, Novels, Local Retail Outlets, etc. Oligopoly: Automobiles (Toyota, GM, Honda, etc.), Fuel Monopoly: Local Utility: Water, Power, Cable

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