ECO2071 - Characteristics of the Various Market Structures

Characteristics of the Various Market Structures
The market structures influence how price and output decisions are made by the firms in their respective
structure. In all market structures, one of the primary goals is to maximize profits or minimize losses.
One of the major differences between these market structures is how price and output decisions are
made, which in turn depends on the characteristics of each market structure. There are four market
structures:
1. Perfect competition
2. Monopolistic competition
3. Oligopoly
4. Monopoly
Tasks:
1. Using Template A, construct a table that describes the various characteristics of each market
structure.
2. Identify a firm for each of these market structures and explain why each firm belongs in the
market structure identified.
3. Using Microsoft Excel, construct a graph for each of the market structures and explain how price
and output decisions are made in each structure and how they differ.
4. How is marginal analysis used in the price and output decisions of firms in the various market
structures?
Template A:
Perfect
Competition
Number of Firms
Pricing Decisions
Output Decisions
Profit
Demand Curve
Ease of Entry
Product
Differentiation Deliverables: Monopolistic
Competition Oligopoly Monopoly Prepare a 5-10 page Microsoft Word document that includes the tasks noted above and meets
APA standards. Include a summary section in your report that contains 5-7 bullet points identifying your major
findings or conclusions of your paper Ensure you use the following reference Mankiw, N. G. (2015). Principles of Economics, 7th Edition