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Business Table

In: Business and Management

Submitted By waldon42
Words 492
Pages 2
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University of Phoenix Material

Differentiating Between Market Structures Table * * Compare the four market structures by filling in the table. * | Perfect competition | Monopoly | Monopolistic competition | Oligopoly | * Example organization | Agriculture company | Electric Company | Colgate | Sprint | * Goods or services produced by the organization | Corn | Electric | Toothpaste | Cell phone service | * Barriers to entry | There are no barriers to entry. | There are numerous barriers of entry for a monopoly. Start up cost are high and prevent other companies the ability to enter the market. Patents are barriers in which prevent sell of products by another company. Legal barriers exist in which the government has already designated who can sell this product. | Barriers to entry do not exist. There are low start up cost and no sunk cost. A company can enter and exit with little or no cost. | Barriers to entry are high. Patents, economic on scale, and the hard to access complex technology. These barrier of entry prevent other companies entering into the cell phone market. | * Number of organizations | There are a large numbers of companies that offer the same indistinguishable product. | There is only one organization . | There are numerous companies with similar product but not an absolute substitute. | There are limited number of companies. Just a few in which are at a constant battle to gain market power and control. | Price elasticity of demand | Market supply and demand determine the price. The price is elastic because the supply and demand is effected by the change in price. | A monopoly should be inelastic. This is because the supply and demand of a product is unaffected by change in price. | A monopolistic competition company is inelastic. The company can...

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