Number of sellers and product type determine market nature {market structure}. Many sellers can sell standardized product in pure competition.
Many sellers can sell small amounts of differentiated product {monopolistic competition}, which emphasizes product design and publicity, because brand name, variety, prestige, and habit affect consumer. Price is higher but equals extra value to consumer. Monopoly and oligopoly can lead to more-efficient management and better technology, which can lower costs. Monopoly and oligopoly markets typically depend on prestige or high sales, rather than profit.
Markets {black market}| dealing in illegal or illegally priced goods and services can develop.
If market has few businesses {oligopoly}|, monopolistic practices can develop.
Competition in some markets {natural monopoly}, such as public utilities, can be socially confusing or bad. If market has only one business {monopoly}| {monopolization}, business can fix prices and use pricing and other devices to keep others out of market. Governments can outlaw agreements to fix prices or outputs and attempts to exclude competition from markets.
Monopolistic practices {collusion}| can be agreeing to fix prices, split market, or otherwise restrain trade.
Monopolistic practices {foreclosure, distribution}| can be trying to curtail competitive product or service distribution.
Monopolistic practices {predatory pricing}| can be selling product below cost to drive competitor out of the market.
Monopolistic practices {tying}| can be forcing people to buy other products when they buy product.
6-Economics-Microeconomics-Market
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Date Modified: 2022.0225