The 4 Types of Market Structures

The 4 Types of Market Structures

Monopoly

A market structure in which a single producer supplies a unique product that has no close substitutes. In an unregulated monopoly, the producer sets the prices

Monopolistic Competition

Examples

Perfect Competition

Oligopoly

One producer, unique, high barrier to entry, substantial control over prices

US Postal Service

Sirius XM

A market structure in which many producers supply similar but varied products. This structure is the closest to perfect competition.

A market structure in which many producers supply an identical product. This is the most efficient structure, with prices set by supply and demand.

Toothbrushes

A market structure in which a few firms dominate the market and produce similar or identical goods. This is more competitive than an monopoly.

Examples

Many producers, differentiated products, few barriers to entry, some control over prices.

Plates

Produce

Many producers and consumers, identical products, easy entry, no control over prices.

Cotton

Examples

Car Manufacturers

Few producers, similar product, high barriers to entry, some control over prices

Oil