question archive How would you explain the differences among the following market structures - perfectly competitive market, monopolistic market, monopolistic competitive market, oligopolistic market?

How would you explain the differences among the following market structures - perfectly competitive market, monopolistic market, monopolistic competitive market, oligopolistic market?

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How would you explain the differences among the following market structures - perfectly competitive market, monopolistic market, monopolistic competitive market, oligopolistic market?

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Differences among perfectly competitive market, monopolistic market, monopolistic competitive market, oligopolistic market are:

  • Number of sellers: there is a large number of sellers in perfect competition, there are fewer sellers in monopolistic competition, there are few numbers of sellers in oligopoly competition, and lastly, there is only one seller in a monopoly competition.
  • Entry barriers: these market structures are rated from high to low on the basis of their entry barriers, monopoly, oligopoly, monopolistic, and perfect competition.
  • Profits: firms in perfect competition and monopolistic competition earn normal profits, and firms in oligopoly and monopoly earn abnormal profits.