- 1. MARKET STRUCTURE市場結構
- 2. Concept Tour
- 3. What is a “MARKET” ?Too Simple !
- 4. What is a “MARKET” ?In Economics, a Market is defined as a context in which exchange of goods and services between sellers and buyers takes place.A Market exists whenever a transaction is made.
- 5. Four features:
1. Large No. of Buyers & Sellers
2. Homogeneous Products
3. Free Entry & Exit
4. Perfect Market Information
- 6. Large No. of Buyers & Sellers
the action of an individual buyer or seller is unable to affect the market priceBuyersSellers
- 7. Homogeneous Products
the products in the market must be identical in the eyes of consumers
- 8. Free Entry and Exit
Firms are free to entry or leave the marketWelcome to
Perfectly Competitive Market
Exit!!Entry!!
- 9. Perfect Market Information
Buyers & Sellers know all market information about goods e.g. PriceQualityQuantity
- 10. Example:
The stock exchange is a close example
- 11. Four Features:
1. Large No. of Buyers & Sellers
2. Differentiated Products
3. Free Entry & Exit
4. Imperfect Market InformationSame
as P.C.Same
as P.C.
- 12. Product Differentiation
A firm can use product differentiation to promote sales.
Techniques are:new designs
advertising
branding
- 13. Imperfect Information of the Market
Sellers & Buyers don’t have perfect info. on price & quality of goods
??
- 14. Example:
Rice is an example
- 15. Four features:
1. A Few Dominant Sellers
2. Similar but Differentiated Products
3. Entry is Restricted
4. Imperfect Market Information
Same as P.C. & M.C.
- 16. Few dominant sellers
Oligopolies has to consider the reactions of other firms before making any decision
price rigidity
price leadership
non-price competition Market behavior:
- 17. Similar but Differentiate Products
the products are close substitutes to one another
- 18. Entry is Restricted
it is difficult because of government regulation/huge capital/technological requirementsImperfectly Competitive MarketEntry?
- 19. Same as M.C. & O.Four Features:
1. Only One seller in the whole market
2. No close subsitiute
3. Highly Difficult (even impossible) to Entry
4. Imperfect (highly restricted) Market Information
- 20. Only One Seller in the Whole Market
buyers can obtain the goods or services from monopoly onlyYou can only buy my product! woo...woo...
- 21. No Close Substitutes
buyers are difficult to find another goods to satisfy the same want
- 22. Highly Difficult (even impossible) to entry
it is because of monopoly powerSources of Monopoly Power
government ownership
government franchise
ownership of important resources
huge capital requirement
economies of scaleNo Entry!!
- 23. Examples
- 24. Summary Monopoly Oligopoly Monopolistic Perfect
Competition Competition1. No. of sellers2. No. of buyers3. Products nature4. Ease of entry5. Information availabilityOneManyNo close substituteForbiddenRestrictedRestrictedRestrictedEasy to enterPerfect InformationManyManyManyEasy to obtainFree entryHeterogeneousHeterogeneousHomogeneousA few dominant sellersManyMany
- 25. Revision
- 26. Revision (1)Oligopoly
- 27. Revision (2)Monopolistic Competition
- 28. ~END~