What are the four types of markets? Give a brief description of each type
What will be an ideal response?
The four types of markets are perfect competition, monopoly, monopolistic competition, and oligopoly.
Perfect competition has many firms selling identical products to many buyers, with no barriers to entry or exit.
Monopoly has one firm selling a good with no close substitutes and a barrier that blocks the entry of new firms.
Monopolistic competition has many firms making similar but not identical products with no barriers to entry or exit.
Oligopoly has a small number of generally large firms producing either identical or differentiated products.
You might also like to view...
Which of the following is an example of an automatic stabilizer?
a. Congress legislates lower tax rates to increase consumption and investment. b. Tax rates are increased during a recession to maintain a balanced budget. c. A regressive income tax system reduces tax revenues (as a share of income) as income expands. d. Revenues from the corporate income tax increase sharply during a business boom but decline substantially during a recession, even though no new tax legislation has been enacted.
"An extra dollar of income gives more additional satisfaction to a poor person than to a rich person." This is an important assumption of which political philosophy?
a. utilitarianism b. liberalism c. libertarianism d. republicanism