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|
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.
26,808,017 questions answered
Popular Conversations
What does throttle mean?
4/16/2018 10:25:30 AM| 5 Answers
Error 401- Unauthorized
4/13/2018 4:59:54 AM| 3 Answers
The science of the creation of maps and charts is called ...
Weegy: The science of the creation of maps and charts is called cartography. User: Which of the following would ...
4/13/2018 8:36:16 AM| 3 Answers
What’s 307,495 rounded to the nearest thousand
Weegy: 307,495 rounded to the nearest thousand is 307,000. User: Which of the following statements about the number ...
4/20/2018 6:40:52 PM| 2 Answers
What's one way we can check our answer to 2 ×10 = 20? A. 2 ÷ ...
Weegy: A throttle body is part of the air intake system that helps control the amount of air that gets into the engine. ...
4/13/2018 7:46:31 AM| 2 Answers
Which sentence does not contain misplaced or dangling modifiers? ...
Weegy: The sentence that does not contain misplaced or dangling modifier is:
4/15/2018 8:58:11 PM| 2 Answers
Weegy Stuff
S
P
L
P
P
P
P
Points 219 [Total 645] Ratings 0 Comments 219 Invitations 0 Offline
S
R
L
R
Points 171 [Total 309] Ratings 0 Comments 21 Invitations 15 Offline
S
1
L
L
P
R
P
L
P
P
R
P
R
P
R
Points 153 [Total 12956] Ratings 0 Comments 143 Invitations 1 Offline
S
L
Points 101 [Total 101] Ratings 1 Comments 61 Invitations 3 Offline
S
Points 50 [Total 50] Ratings 0 Comments 0 Invitations 5 Offline
S
P
L
Points 35 [Total 126] Ratings 0 Comments 35 Invitations 0 Offline
S
Points 30 [Total 35] Ratings 3 Comments 0 Invitations 0 Offline
S
Points 11 [Total 11] Ratings 0 Comments 11 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.