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Q (1) Discuss the key features of Competitive,monopoly,and olygopoly market structures. Q(2) Compare and contracts the...

Q (1) Discuss the key features of Competitive,monopoly,and olygopoly market structures.

Q(2) Compare and contracts the perfect market competition and monopoly market structures.

Q(3) What is the difference between competitive,monopoly and oligopoly market structures in terms of price,output determination.Carefully Illustrate using diagrams

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Answer #1
Feature Competitive monopoly oligopoly
Number of sellers Many One Few
Type of product Homogenous with perfect substitutes available Unique with no close substitute available Homogenous or differentiated depending on the type of oligopoly
Entry-exit barriers No barriers Strict barriers Barriers depend on the type of oligopoly
Equilibrium condition Price = marginal Revenue = marginal cost P > MR = MC P > MR = MC
Long run profit Zero Huge profits Profits exist
Demand curve shape Horizontal Downward sloping Kinked demand curve

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