In: Economics
Perfect competition market, monopolistic competition market, oligopoly and monopoly markets product feature, number of buyers / sellers, entry barrier, long Compare in terms of period profit and Herfindahl-Hirschman index.
Basis | perfect Competition | Monopoly |
Monopolistic Competition |
Oligopoly |
---|---|---|---|---|
Meaning and number of buyers/ sellers | A market in which there is large number of buyers and sellers and each firm is a price taker ,having no influence on price as fixed by the industry | A market situation in which there is a single seller in the market.Being a price maker, he has full control over the market. | A market situation in which there are large number of buyers and sellers. | A market structure characterized by the presence of a few large firms having cut throat compertion and interdependence in their decision making |
Product feature | homogeneous products | no close substitutes available | differentiated products but close substitutes | homogeneous or differentiated products |
Short run profits | nomal profits/ super prifits/ minimum losses | normal profit/ super profits/ minimum losses | normal profits/ super profits / minimum losses | normal profits / super profits/ Minimum losses |
Long run profits | normal profits | super profits | normal profits | normal profits |
Entry/ exit of firms | freedom of entry and exit | barrier to entry of new firms | freedom of entry and exit | substantial barrier to entry of new firms |
Hergindahl-Hirschman Index( a measure of market concentration) | closer to zero | closer to 10000 | 1500-2000 | closer to 2500 |