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Characteristics of the Four Basic Market Models |
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|
Characteristic |
Pure Competition |
Monopolistic Competition |
Oligopoly |
Monopoly |
|
Number of firms |
A very large number |
Many |
Few |
One |
|
Type of product |
Standardized |
Differentiated |
Standardized or differentiated |
Unique; no close subs. |
|
Control over price |
None |
Some, but within rather narrow limits |
Limited by mutual inter-dependence; considerable with collusion |
Considerable |
|
Conditions of entry |
Very easy, no obstacles |
Relatively easy |
Significant obstacles |
Blocked |
|
Nonprice competition |
None |
Considerable emphasis on advertising, brand names, trademarks |
Typically a great deal, particularly with product differentiation |
Mostly public relation advertising |
|
Examples |
Agriculture |
Retail trade, dresses, shoes |
Steel, auto, farm implements |
Local utilities |