Eco Market Power

market power

the ability of a firm to influence the price of a good or service in the market.

Perfect Competition

a theoretical market structure in which each firm is a price taker, so no single firm can influence the market price.

Assumptions of Perfectly Competitive market (MFHPM)

Many Small firms, Free entry and exit, homogenous products, perfect information, mobile resources.

Monopoly

A market structure where a single firm dominates and has significant price setting power due to a lack of competition.

Key features of a monopoly (SHN)

Single or dominant firm, high barriers to entry, no close substitutes (e.g aus post, google)

Monopolistic competition (Imperfect competition)

A market structure with many competing firms, but each selling differentiated goods.

Key features of monopolistic competition

Many firms, Free entry and edit, product differentiation.

Oligopoly (Imperfect competition)

A market dominated by a few large firm, often resulting in strategic behaviour and limited price competition.

Key features of oligopoly

Few large firms, high barriers to entry, interdependence