The differences b/n industry structures is the amount/type of competition

Credit Card Companies

• Visa

• Mastercard

• American Express

• Discover

In perfect competition - demand is the same across the board

Monopolistic competition - The demand curve is diagonal because the products are not exactly the same or only one person has control

• no competition

• you control profits

oligapoly - competition but not a lot and one typically is the front runner

• credit cards are a big example

• credit card companies and banks work together

• if you don’t pay them back then your credit score will go down

Fixed costs - barrier to entry

Variable costs - materials and labor

Ford - doesn't

• testing

• everything and trieds to test drive with dummies

Barrier to Entry

Collusion

• oligopoly

• Monopoly - good for the seller

• working together to keep something low (salaries)

  • baseball case

copyright - temporary monopoly art artistic things

what re the barriers of entries

• high fixed costs

• copyrights

• natural resoruces