four types of market industries

price taker also stands for

perfect/pure competition

price searcher also stands for

monopolistic competition

perfect comp definition:

large number of small firms producing an identical product in an industry (market area) that permits complete freedom of entry and exit

perfect comp example:

agriculture, eggs, apples

zero profit in the long run and low barriers to enter market:

mono comp and perfect comp

positive profit in the long run and high barriers to enter market:

oligopoly and monopoly

monopoly and perfect comp’s strategies used against competition:

none, they don’t have competition

monopoly elasticity of demand:

very inelastic

monopolistic comp elasticity of demand:

elastic; high-ish

oligopoly elasticity of demand:

inelastic; low-ish

perfect comp elasticity of demand:

perfectly elastic

monopolistic comp examples:

restaurants, retail

oligopoly examples:

automobiles, manufacturers

monopoly example:

electricity, cable television providers

oligopoly strategies against competition:

price, technology, investment

monopolistic comp strategies against competition:

location and product differentiation

monopolistic competition definition:

a large number of seller that supply differentiated products to a market

oligopoly definition:

a small number of sellers constitutes the entire industry

monopoly definition:

characterized by a single seller of a well-defined product for which there are no good substitutes

perfect comp graph:

monopolistic comp graph:

oligopoly graph:

monopoly short-run graph: