Market Structures II
Economics SSS 2 Second Term
WEEK 7
Market Structures II
Performance Objectives
Student should be able to:
- Draw graph to illustrate price and quantity determination under
- Perfect competition
- Monopoly market
- Oligopoly market
Content
PERFECT MARKET STRUCTURE
A perfect market structure also known as perfect competition is characterized by a very large number of buyers and seller of homogeneous products. Information is freely available to all market participants that each can act as a price taker; there is free entry and exit to the market. In reality, it is difficult to identify a perfect market; however, agricultural markets are examples of nearly perfect competition.
Assumptions and features of perfect competition
- All goods are homogeneous
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