Product Markets

study guide keywords

Monopolistic competition

a market structure characterized by many medium sized firms who are innovative and differentiate their products in both price and non price ways

Monopoly

one firm that constitutes the entire industry selling a product, for there are no close substitutes

Oligopoly

a market structure characterized by few sellers that are interdependent of each other to create control over price markets

Perfect Competition

a market structure characterized by a large number of sellers with a homogenous product, infinitely elastic demand for firms, and no price takers

Price takers

cannot control the price of their goods because they don’t have enough market power and must accept the market price

Price makers

can control and manipulate markets by charging prices that is in excess of marginal costs to maximize profits