Economics Supply And Demand Questions
There are four different types of market power:
1. Monopoly: This occurs when there is only one seller in the market, giving them complete control over the supply and price of a product or service.
2. Oligopoly: In an oligopoly, a small number of large firms dominate the market. These firms have the ability to influence prices and output levels due to their significant market share.
3. Monopolistic competition: This type of market power exists when there are many sellers offering differentiated products. Each firm has some control over the price of its product due to product differentiation, but there is still competition in the market.
4. Perfect competition: This is a market structure where there are many buyers and sellers, and no single firm has the power to influence prices. In perfect competition, all firms are price takers and have no market power.