Lesson 13 -Firms and Market structure
Learning Goals: By the end of this lesson you will be able to
- Market structures
- Identify the importance and nature of competition in different markets
- Understand various types of market structures (e.g., monopoly, perfect competition, oligopoly, monopolistic competition) and assess their advantages and disadvantages for different stakeholders
Success criteria
After completing this lesson you will be able to understand different structures of market .Type of competition in markets and how the firms maximize profit in different markets.
Icebreaker forums
You have your two best friends working with you at ABC corporation , if you get an offer from XYZ corporation at a higher salary, will you quit the job?
Perfect competition
A rare market structure characterized by many sellers (selling exactly the same product) and many buyers, no barriers to entry into the market for new firms, and perfect knowledge of prices (so there are no price differences and no individual can influence them); also called pure competition.Monopolistic competition
A market structure in which many small to medium-sized firms sell a differentiated product, each having some control over price.oligopoly
A market structure characterized by a few large firms, selling an identical or differentiated product, each with some to substantial control over price.
Monopoly
A market structure in which one firm has complete control over supply, allowing it to set a profit-maximizing price.A monopoly is characterized by the absence of competition, which can lead to high costs for consumers, inferior products and services, and corrupt behavior.
Do you agree?
Students to complete this after you've finished all activities/tasks in today's lesson.