By: Keri Kerr
ECO/361 Economics for Business II
University of Phoenix
April 14, 2008
Faculty Member, Michael Hebert
Prepare a table that compares and contrasts the various elements of four different market structures.
Perfect CompetitionMonopolyMonopolistic CompetitionOligopoly Example of a firmGas StationsQwestExcel EnergyGrocery Stores Goods/Services producedGasLand Line Phone serviceHeat, electricity, gasBasic living essentials Barriers to EntryOil production, government regulationPower outages, international regulationsRegulationsProduce, meat, cheese, drugs Number of firmsHundreds of companies, thousands of locationsOneOneSame as gas stations, thousands of locations Price elasticity of demandElasticElasticElasticElastic
Economic Profits (Y/N)YesNoNoYes
Wal-Mart is an organization that people across the globe are familiar with. Wal-Mart is an oligopoly market structure. They are very effective as this market structure for this type of organization. They offer low prices that competitors cannot compete with and yet they still seem to make huge amounts of money. They also tend to run mom and pop shops right out of business. They also provide many jobs that donate to the economy. Wal-Mart is also known for way that they do business. Wal-Mart only does business with businesses that follow their terms and conditions. Not just anyone can sell products to Wal-Mart. They also let you know what they will be selling your product for. They do not believe in suggested retail pricing.