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
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,996,160 questions answered
Popular Conversations
Locate the verbal in the following sentence and identify its ...
Weegy: Check the turkey to see if it is done. Infinitive: To see; Use: Adverb. User: Locate the infinitive and ...
9/3/2015 4:37:24 PM| 4 Answers
Fishing is the leading industry in ...
9/3/2015 9:21:23 AM| 2 Answers
As a sales person for Tan's Bakery, Yolanda is paid a straight ...
Weegy: Yolanda's total gross pay is $12,741.3. It is where 5.3% of $12,100 is $641.3, then add it to $12,100, resulting ...
9/3/2015 11:43:02 AM| 2 Answers
4x3 – 3x2 + x + 3x3
Weegy: x=4
9/3/2015 12:54:05 PM| 2 Answers
Locate the complete adjective phrase and the noun modified. I heard ...
Weegy: Please indicate the sentence so I can give you the answer. Thanks! User: Locate the complete adjective phrase ...
9/3/2015 4:46:53 PM| 2 Answers
In a short story, any pronoun that indicates a person or thing spoken ...
Weegy: In a short story, any pronoun that indicates a person or thing spoken of is given in the third person. ] ...
9/3/2015 6:14:06 PM| 2 Answers
Which listening barrier is interrupting effective communication in ...
Weegy: Taylor: I just found out my dad got us tickets for the football game! Morgan: I don't watch professional sports ...
9/3/2015 8:42:13 PM| 2 Answers
Weegy Stuff
S
1
L
L
P
R
Points 138 [Total 9461]| Ratings 0| Comments 138| Invitations 0|Online
S
L
L
P
1
Points 102 [Total 9412]| Ratings 1| Comments 92| Invitations 0|Offline
S
Points 73 [Total 378]| Ratings 0| Comments 73| Invitations 0|Offline
S
Points 49 [Total 833]| Ratings 0| Comments 49| Invitations 0|Offline
S
Points 39 [Total 572]| Ratings 0| Comments 39| Invitations 0|Offline
S
Points 23 [Total 28]| Ratings 1| Comments 3| Invitations 1|Offline
S
Points 20 [Total 208]| Ratings 0| Comments 20| Invitations 0|Offline
S
Points 17 [Total 17]| Ratings 0| Comments 7| Invitations 1|Online
S
Points 10 [Total 10]| Ratings 0| Comments 0| Invitations 1|Offline
S
Points 9 [Total 233]| Ratings 0| Comments 9| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.