Lesson 13 Glossary Review
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.