Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: what role does each market structure play in the economy
A: 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|
Asked 9/11/2011 2:58:55 PM
0 Answers/Comments
Get an answer
New answers

There are no new answers.


There are no comments.

Add an answer or comment
Log in or sign up first.
26,580,504 questions answered
Popular Conversations
Which term refers to the process by which volcanoes release carbon ...
Weegy: The term D refers to the process by wich volcanoes release carbon dioxide.
1/12/2018 12:11:58 PM| 2 Answers
Solve this equation: 2s + s + 12 = 132. A. s = 120 B. s ...
Weegy: 2s + s + 12 = 132 User: Simplify this expression: 13 + (–12) – (–5) = ? A. –6 B. 6 C. –30 ...
1/14/2018 6:19:10 AM| 2 Answers
A binomial consists of _______ terms. A. 2 B. 3 C. 1 ...
Weegy: A binomial consists of two terms. User: Which of the following is a monomial? A. 2 + xyz B. 2x + ...
1/14/2018 6:22:47 AM| 2 Answers
If two angles are supplementary and one of them is 30°, what is the ...
Weegy: Two angles are supplementary. The first angle measures 60 . The measurement of the second angles is 120 . ...
1/14/2018 6:48:01 AM| 2 Answers
Simplify this expression: 19 – (–8) – (–14) = ? A. 25 ...
Weegy: 19 ? (?8) ? (?14)
1/15/2018 10:29:20 PM| 2 Answers
Which unit do astronomers use for angular ...
1/18/2018 7:10:19 PM| 2 Answers
Which of the following is an example of a long-term climatic change? ...
Weegy: Ice age is an example of a long-term climatic change. User: In what times of year are tropical cyclones most ...
1/18/2018 8:30:25 PM| 2 Answers
3x = -39
Weegy: 3x = -39; User: All of the following were innovations that benefited farmers during the Second Agricultural ...
1/19/2018 1:53:25 PM| 2 Answers
Weegy Stuff
Points 631 [Total 923] Ratings 2 Comments 611 Invitations 0 Online
Points 121 [Total 4572] Ratings 0 Comments 61 Invitations 6 Online
Points 70 [Total 188] Ratings 0 Comments 70 Invitations 0 Offline
Points 17 [Total 17] Ratings 0 Comments 17 Invitations 0 Offline
Points 12 [Total 12] Ratings 0 Comments 12 Invitations 0 Offline
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
Points 5 [Total 44] Ratings 0 Comments 5 Invitations 0 Offline
Points 3 [Total 3] Ratings 0 Comments 3 Invitations 0 Offline
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
Points 1 [Total 2] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.