‏Market Structure

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‏Market Structure by Mind Map: ‏Market Structure

1. In an oligopoly, there are only a few firms in the market. While there is no clarity about the number of firms, 3-5 dominant firms are considered the norm.

1.1. in this case either compete with another to collaborate together

2. Perfect Competiton

2.1. ‏In a perfect competition market ‏structure, there are a large number of ‏buyers and sellers. All the sellers of ‏the market are small sellers in ‏competition with each other. There is ‏no one big seller with any significant ‏influence on the market.

2.1.1. ‏The products on the market are ‏homogeneous, i.e. they are ‏completely identical

3. Monopolistic Competition

3.1. This is a more realistic scenario that actually occurs in the real world. In monopolistic competition, there are still a large number of buyers as well as sellers.

3.1.1. Now the consumers have the preference of choosing one product over another.

4. Oligopoly

5. Monopoly

5.1. In a monopoly type of market structure, there is only one seller, so a single firm will control the entire market. It can set any price it wishes since it has all the market power.

5.1.1. Monopolies are extremely undesirable.