Monopoly: Occurs when an entire industry is controlled by one company, Has the highest barriers to entry, One business has complete control over price, Can lead to poor customer service due to lack of competition, Lowest motivation to create new products, Oligopoly: Occurs when an industry is controlled by a handful of companies, Can sometimes lead to the formation of cartels, Collusion and price fixing can become a problem, Cereal market and automobile industry are examples of this, Monopolistic Competition: Occurs when many sellers sell similar but differentiated products, Major focus of sellers is branding and marketing, This market has some barriers to entry, but they are typically low, The shampoo market would be an example of this market structure, Perfect/Pure Competition: Occurs when an industry has many businesses selling the same product, Has no barriers to entry, Products are typically identical, Profits are typically low because businesses have no control over price, Buyers typically have full information about price and features of product, Typically where you find most efficient producers, Sellers can enter and exit market freely,
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U19349046
Grade 12
Business Studies
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