Question

Distinguish between the following market structures by examining three (3) characteristics each of firms in these market structures:                                                                              (18)

• Perfect competition                                                                                                    
• Monopolistic competition                                                                                           
• Monopoly

Answer 1

market	monopoly	Monopolistic competition	Perfect competition
pricing	A Monopoly price is set by a seller with market power; that is, a seller who can drive up the price by reducing the quantity	all firms determine the price of their own products/in other words they have limited market control.	price is decided by the market forces of demand and supply
product	a monopoly market, usually, there is a single firm which produces and/or supplies a particular product/ commodity. such a firm constitutes the entire industry.	producers sell products that are differentiated from one another ,like branding etc and hence are not perfect substitutes.	Each company makes a similar or homogenus product.
no.of sellers	only one	many	There are many buyers and sellers in the market