4 Degrees to competition

QUESTIONS

• Number of businesses/companies?
• How different are the goods/services?
• How easy is it to enter the market?
• What are prices like?
• What is an example?

ANSWERS

Pure competition

• Large number of firms.
• Producing a standardized product. 
• Is a low barrier of entry into the business.
• Determine by costumer demands.
• Agricultural products.

Monopolistic Competition

• Many suppliers.
• product differentiation.
• Easy entry.
• Higher prices.
• Consumer goods. 

OLIGOPOLY

• Few firms.
• Sells either a standard or differentiated products.
• The entry is difficult.
• The price is changing all the time.
• Many industries (top cigarettes and beer companies

MONOPOLY

• One firm.
• Sells a unique product.