Question and answer
what role does each market structure play in the economy
There are four basic types of market structures by traditional economic analysis: perfect competition, monopolistic competition, oligopoly and monopoly. A monopoly is a market structure in which a single supplier produces and sells a given product. [ If there is a single seller in a certain industry and there are not any close substitutes for the product, then the market structure is that of a
"pure monopoly". Sometimes, there are many sellers in an industry and/or there exist many close substitutes for the goods being produced, but nevertheless companies retain some market power. This is termed monopolistic competition, whereas by oligopoly the companies interact strategically.Oligopoly is a fairly common market organization. In the United States, both the steel and automobile industries (with about three large firms each) provide good examples of oligopolistic market structures. The most important characteristic of an oligopolistic market structure is the interdependence of firms in the industry. The interdependence, actual or perceived, arises from the small number of firms in the industry. Unlike under monopolistic competition, if an oligopolistic firm changes its price or output, it has perceptible effects on the sales and profits of its competitors in the industry. Thus, an oligopolist always considers the reactions of its rivals in formulating its pricing or output decisions.The real world is rarely characterized by perfect competition, and in certain circumstances, the society has to tolerate a monopoly (e.g., a natural monopoly or a monopoly due to patent rights). Nevertheless, the idea of competition is very deeply ingrained in the society. So long as there is a reasonable degree of competition (as in the case of monopolistic competition or oligopoly), the society feels reasonably secure with respect to the working of its markets. MACROECONOMICS Macroeconomics is a social science that studies an economy at the aggregate (or nationwide) level. Macroeconomic theories study an overall economy and prescribe policy recommendations based on the study of the behavior of key macroeconomic variables. ]
Expert answered|selymi|Points 6110|
Question
Asked 9/11/2011 2:58:55 PM
0 Answers/Comments
Get an answer
Ask Weegy or search for an answer now. (Free)
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
16,973,821 questions answered
Popular Conversations
3x + 2x = -35
Weegy: 1/4 (2x ? 12) = 2/3 (3x + 9); 1/2x - 3 = 2x + 6; 1/2x - 2x = 6 + 3; -3/2x = 9; x = 9 ? (-3/2); x = 9 * ...
7/30/2014 12:20:31 PM| 2 Answers
7+8+8=? User: 7+9
Weegy: 8/7/9=(8/7)/9= 1.143/9=0.127;
7/30/2014 3:17:02 PM| 2 Answers
Determine whether the verb tense shift in the sentence below is ...
Weegy: The moderator asked for questions as soon as the speaker has finished. The verb tense shift is INAPPROPRIATE. ...
7/30/2014 4:08:17 PM| 2 Answers
4 5/6 + x = 8
Weegy: The answer for : (x^8+x^4)/x is (x^4+x^8)/x = sum_(n=-infinity)^infinity (piecewise | 1 | n = 7 2 | n = 0 7 | n ...
7/30/2014 4:17:44 PM| 2 Answers
The moderator asked for questions as soon as the speaker has ...
Weegy: a. appropriate :) User: By the time negotiations began, many pessimists have expressed doubt about ...
7/30/2014 4:30:09 PM| 2 Answers
Consider the poem, “The Soul Selects her own Society.” Select an ...
Weegy: A. Unnatural selection would be a title that reflects the main idea of the poem. User: In “The Soul Selects ...
7/30/2014 4:43:37 PM| 2 Answers
What year did the United States enter World War I? A. 1917 ...
Weegy: The United States enter World War I in: 1917. User: The first oil well was drilled in what geographical ...
7/31/2014 6:18:32 AM| 2 Answers
18-7x=-20.5 what is the value of x
7/31/2014 8:22:22 AM| 2 Answers
That man is a famous hockey player. a. Action verb b. Linking verb
Weegy: A linking verb is a verb that connects the subject of a sentence to the complement. User: The winter air ...
7/31/2014 8:47:58 AM| 2 Answers
The harvesting of wheat in British Columbia is an example of ...
Weegy: The harvesting of wheat in British Columbia is an example of A. ecological imperialism. User: Which of the ...
7/31/2014 10:34:41 AM| 2 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
Points 2595 [Total 21595]| Ratings 1| Comments 2585| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
Points 2410 [Total 17539]| Ratings 0| Comments 2410| Invitations 0|Online
S
L
P
C
L
P
C
P
C
L
P
C
P
C
Points 2338 [Total 14892]| Ratings 1| Comments 2328| Invitations 0|Offline
S
L
1
Points 1793 [Total 3976]| Ratings 2| Comments 1773| Invitations 0|Offline
S
L
1
1
1
1
L
1
Points 1530 [Total 7707]| Ratings 2| Comments 1510| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 1048 [Total 10656]| Ratings 0| Comments 1048| Invitations 0|Offline
S
1
L
Points 887 [Total 4562]| Ratings 2| Comments 867| Invitations 0|Online
S
P
C
L
P
L
1
Points 825 [Total 5879]| Ratings 4| Comments 785| Invitations 0|Online
S
Points 195 [Total 199]| Ratings 0| Comments 185| Invitations 1|Offline
S
R
R
Points 160 [Total 348]| Ratings 1| Comments 140| Invitations 1|Offline
Home | Contact | Archive | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.