7.6.1 Perfect competition and imperfect competition
Market structures range from perfect competition (many small firms) to monopoly (one firm). Between them lie monopolistic competition (many firms selling differentiated products) and oligopoly (a few large interdependent firms). A natural monopoly exists where one firm can supply the whole market at a lower average cost than two or more firms, because economies of scale are so large.
🔒 Also in the full notes
- 7.6.2 Structure of the listed markets
- 7.6.3 Barriers to entry and exit
- 7.6.4 Performance of firms in different market structures
- 7.6.5 Definition and calculation of the concentration ratio
- Exam practice: 4 practice questions
- 4 exemplar 20-mark essays with full model answers, mark breakdowns and common mistakes
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