Competitive and Monopolistic Markets

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Essay #: 065714
Total text length is 6,822 characters (approximately 4.7 pages).

Excerpts from the Paper

The beginning:
Competitive and Monopolistic Markets
The Competitive Market
A competitive market has the following three characteristics: there is easily available, complete, and reliable information about the products, which are identical or consistent; there are few if any entry or exit barriers to the market, and low transaction costs; and there are a large number (ideally an infinite number) of buyers and sellers ("Strategy,"
n.d
.).
If the market structure is perfectly competitive, then there are so many sellers that no one seller can influence the market prices, and there are no costs or other deterrent factors keeping more sellers from entering the market if they so wish ("Competitive market,"
n.d
., p. 72). The product is known to all, and its...
The end:
.....arket can be more stable than a competitive one, because its control lies in relatively few hands and it is free of the need to take into account most outside factors.
References
AS Economics Unit 1: Markets and market failure; syllabus, key terms, and charts. (
n.d
.) Web document. Retrieved from http://www.freewebs.com/busecon/AS%20Economics%20key%20terms.pdf
Competitive market model. (
n.d
.) Web document, Chapter 5. Retrieved from http://www.cs.wfu.edu/~fulp/Papers/ ewfchp5.pdf
Monopolistic market. (
n.d
.) Investopedia.com. Retrieved from http://www.investopedia.com/terms/m/monopolymarket.asp
Strategy: Analyzing competitive industry structure. (
n.d
.) tutor2u. Retrieved from http://tutor2u.net/ business/strategy/porter_five_forces.htm