Essays on Perfect Competition and Monopoly Market Structure Essay

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The paper “ Perfect Competition and Monopoly Market Structure” is an excellent variant of the essay on macro & microeconomics. The business operates in different markets that have different characteristics suiting the needs and requirements of the business. There is various type of business structure that has been identified. The different types of market structure are monopoly, monopolistic competition, perfect competition, and oligopoly. Each market has a different set of characteristics and business has to work accordingly. The paper here looks into the perfect completion and monopoly market structure by comparing both the market structure to determine which, is a better market structure in terms of resource utilization.

This will help to understand the manner in which the players can be efficient in utilizing the resources. Before moving on it is important to understand the following terms Aggregate demand: of good in an economy is the sum total of all individual demands (Boyes & Melvin, 2008) Aggregate supply: of good in an economy is the sum total of all individual supply of goods (Boyes & Melvin, 2008) Perfect Competition is a type of market structure that is at the extreme end of the market structure chart as compared to monopoly which falls on the other end of the market structure chart.

Both of this market structure has a different type of characteristics making the players confront different situation working in the market. (Skeath, Velenchik, Nichols & Case, 1992) This helps to differentiate the market structure and determines the efficiency of each market structure. The chart for the different type of market structure is present below Perfect competition is a type of market where there are many players selling a homogenous product, having the independence of movement within and outside the market.

(Machovec, 1995) The following are the characteristics of perfect competition Many Players: Perfect competition is a market characterized by a large number of players. For example, the UK has a large number of cable providers suggesting that the structure of the market is perfectly competitive. There are many suppliers so they have low bargaining power. The main providers are “ Small world media, Wright Cable and Virgin Media” . (Grant, 2007)

References

Boyes W & Melvin M, 2008, “Macro economics”, 7th edition, Houghton Mifflin Company

Competition, 2011, “Perfect Competition”, retrieved on January 4, 2011 from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=perfect+competition

Economies of scale, 2011, “Economies of scale”, retrieved on January 4, 2011 from http://moneyterms.co.uk/economies-of-scale/

Grant T, 2007, “UK television and film industry makes good progress towards greater financial reporting transparency”, UK film and television industry, Lords press notice

Perfect Competition, 2011, “Perfect Competition”, retrieved on January 4, 2011 from http://www.basiceconomics.info/perfect-competition.php

Monopoly, 2011, “Monopoly”, retrieved on January 4, 2011 from http://www.economicshelp.org/microessays/markets/monopoly.html

Machovec F M, 1995, “Perfect Competition and transformation of Economics”, p. 391, Routledge, London

Moffat M, 2011, “What you need to know about monopoly and monopolies power”, retrieved on January 4, 2011 from http://economics.about.com/cs/microeconomics/a/monopoly.htm

Skeath S, Velenchik A, Nichols L & Case K, 1992, “Consistent comparison between Monopoly and Perfect Competition”, Journal of Economic Education, Volume 23

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