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Introduction
There are two markets being analyzed in this project: monopolistic competition and cartels. In our society, gasoline represents the monopolistic competition market structure and the crude oil represents the cartel market structure. ...
Part II
There are four different market structures: perfect competition, monopolistic competition, oligopoly, and pure monopoly. The first characteristic is the number of sellers, as perfect competition has numerous, monopolistic competition has many, oligopoly has few, and true monopoly has only one. Perfect competition and monopolistic competition have unrestricted entry, while oligopoly has some restrictions to entry and monopoly has extreme conditions where no other seller can enter the market. A pure monopoly essentially will be able to set the price of the product, while oligopoly and monopolistic competition will have some ability to set price, and perfect competition has no ability to set price. ... There is no product differentiation in perfect competition and pure monopoly, while there is frequent differentiation in oligopoly and considerable product differentiation in monopolistic competition. An example of perfect competition would be the agriculture industry, monopolistic competition would be soap, oligopoly would be cigarettes, and pure monopoly would be some electric companies. ... is still a monopolistic competitive market.
Approximate Word count = 975
Approximate Pages = 3.9
(250 words per page double spaced)
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