Types of Market Structures Explained
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ScribdTranslationsTypes of Market Structures Explained
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ScribdTranslationsIt is defined as that way of
organized exchange in which
they make purchases and sales of goods and
services getting in touch
demanders and suppliers.
Depending on the number of bidders and
claimants or type of product, the
markets adopt various formats to the
which we call...
Market Structures
MARKET STRUCTURES
According to the number of bidders and
claimants
Offer Many
A single
buyer
Demand buyer
s
A single MONOPOLY
MONOPOLY
BILATERAL
seller
Many MONOPSONY
COMPETENCE
PERFECTA
vendors
TYPES OF MARKET
• Competitive Market
Perfect
• Competition Market
Imperfect
It is a
market...
MANY producers and demanders, the price is
form by the action of all. Furthermore, this implies that the
the individual decision of each of them will hardly exert
influence on the global market
PERFECT: The good that is offered by each producer is
identical (homogeneous product)
TRANSPARENT: All participants have full
knowledge of the general conditions under which it operates
market
FREE: Companies will be able to enter and exit the market.
immediately as soon as they wish
In perfect competition...
although the equilibrium price
competitive is the same for all
the companies, the benefits no.
The facilities, the machinery, and the organization and
management of companies are not the same, thus the
costs and benefits are also different.
Over time, the companies that
those who obtain lesser benefits will do one of two things
things
. Readapt their . Liquidate your
productive processes installations and leaving
to increase your to another sector
benefits. rental
It is a market in which some of the
participants have the ability to influence, to
individual title, in the product price
Some factors that produce imperfections in
the markings are:
Barriers of
income Increase of the
investment for
Agreements for reduce costs
remove the
competition Crisis
economic
Within imperfect competition and in
function of the number of participants and of the
product differentiation can be
establish the following basic types of
market
MONOPSONY
COMPETENCE
MONOPOLIC
MONOPOLY
OLIGOPOLY
There is only one buyer. This allows him
determine the price, the lowest
posible, y la cantidad a comprar.
The monopsony generally occurs with
regarding certain factors of production - such as
for example, the demand for a certain type of work
specialized - or with raw materials and goods in
process; there is monopsony of consumer goods
Additionally, it can occur in some special cases: the
the army of a country can be the sole purchaser of
certain kinds of equipment or weaponry, or certain
distributors or wholesalers can be the only ones
claimants of a certain type of goods that later
ofrecerán al público.
Monopsony, like monopoly, is
a theoretically opposite situation to that of
perfect competition
In practice, except for some cases
particularly, monopsonies only
they are present in relatively local markets
reduced or in circumstances where there is a
decisive government intervention.
Thereisalsoacloserelationshipbetweenthe
monopoly and monopsony situations: one
monopolistic company will easily turn into
the only buyer of certain factors
productive, especially raw materials,
semi-finished products and other supplies.
It exists when many come to the market.
producers and many consumers, but they
difference of the perfect competition market in
that companies turn to differentiation of
their products to improve their position
Upon being perceived competitive.
the company's product
as different from the rest on the part of the
consumers, this achieves the advantages
of the monopoly
However, the existence of many
close substitutes significantly restrict
the "monopoly" power of sellers and gives
as a result a very demand curve
elástica.
EXAMPLE S OF COMPETENCE
MONOPOLICA
Local Stores
In general, they offer the same goods as
other stores, but they differ from each other
being located in different places and to
to offer a different kind of care.
Other markets that have the attributes of the
monopolistic competition is:
El mercado de los libros, los CD, las películas,
computer games, restaurants,
the cookies, the furniture, etc.
There is only one bidder who has full
ability to determine the price
(regulating
It can originate
the amount offered)
en:
The granting of a manufacturing patent for a good
(temporary monopoly).
The control of a productive factor by a company, by
example, the raw material.
The state control of an economic sector or resource that
grants a concession to the private sector.
The existence of a single company that is in conditions
more favorable to produce the good.
There is a small number of
buyers who exercise their control.
Each of the producers holds a certain power
within the market and can act with policies of
prices or with variations in the quantities offered.
The product is slightly differentiated and exists
competitive advertising that seeks to
consumers switch brands.
There is no price war, unless the
market size due to a decrease in power
acquiring or that any of the participants
undertake an aggressive policy to conquer the
portion of the market that is under the control of
otra empresa.
