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← Economics notes
Edexcel IAL·Economics·IAL Economics

Market Structures

14 min read

Perfect competition, monopoly, oligopoly and monopolistic competition, and efficiency and contestability.

Market structures differ by number of firms, barriers to entry and product type.

Perfect competition

Many small firms, identical products, no barriers, perfect information. Firms are price takers; in the long run only normal profit is earned (supernormal profit attracts entrants). Allocatively and productively efficient.

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More Economics notes

The Economic Problem

Demand, Supply & Market Equilibrium

Elasticities of Demand & Supply

Markets, Surplus & Costs