Dynamics of imperfect markets notes

These are the key terms used to describe the dynamics of imperfect markets. A good definition is one precise sentence, not a list of examples. A market in which the market price is not a pure…

A monopoly is a market structure with one seller of a product or service that has no close substitutes. Entry is blocked, so the business has substantial control over supply and can influence the…

A business in an imperfect market uses revenue and cost information to decide how much to produce. This section reviews revenue and cost, and then explains the revenue curves, the equilibrium, and…

An oligopoly is a market structure dominated by a small number of large businesses. Each business must consider how its rivals may react before changing its price, output or marketing. A market…

Monopolistic competition combines competition among many businesses with limited market power that comes from product differentiation. Each business sells a close substitute, not an identical…

A market structure shows how firms, products, entry barriers and information shape rivalry. Compare perfect competition, monopoly, oligopoly and monopolistic competition. Free entry and exit remove…