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)
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