Comparison Table of The 5 Market Structure

Characteristic Perfect Competition Monopolistic Competition Oligopoly Simple Monopoly (No Price Discrimination) Price-Discriminating Monopoly
Number of Firms Very many Many Few One One
Product Type Homogeneous Differentiated Homogeneous or Differentiated Unique Unique
Barriers to Entry None Low High Very high Very high
Price Control None (price taker) Some, limited Considerable (interdependent) Significant (price maker) Significant (multiple prices)
Pricing Strategy Single market price Single price (differentiated) Interdependent pricing Single price Different prices to different consumers/units
Demand Curve Faced Horizontal Downward sloping, elastic Downward sloping (kinked) Downward sloping (market) Downward sloping (but captures CS)
Long-Run Economic Profit Zero (normal) Zero (normal) Positive possible Positive possible Positive (often higher than simple monopoly)
Deadweight Loss (DWL) None Yes (some) Yes (significant) Yes (largest among non-discriminating) None (1st-degree) or Reduced (3rd-degree)
Allocative Efficiency (P = MC) Yes No (P > MC) Usually no (P > MC) No (P > MC) Yes (1st-degree) on last unit; partial for 3rd-degree
Productive Efficiency (min ATC) Yes No (excess capacity) Usually no No (inefficient scale) No (still produces above min ATC typically)
Consumer Surplus Maximum Reduced Reduced Very low Zero (1st-degree) or partially captured
Examples Wheat, corn Restaurants, salons Airlines, autos Local water utility (unregulated) Airline seats, student discounts, auctions

相关笔记

Perfect Competition
Monopolistic Competition
Oligopoly
Monopoly
Price Discrimination