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Forms Of Industiral Organization
Essay specific features
Written by:
Alberto S
Date added:
August 25, 2014
Level:
University
Grade:
A
No of pages / words:
5 / 1174
Was viewed:
8937 times
Rating of current essay:
Essay content:
Economists divide the market into four distinct market structures: pure competition, monopoly, oligopoly and monopolistic competition. This paper will differentiate among the various market structures, while identifying pricing and non-pricing strategies within each market structure.
Pure Competition
According to McConnell & Brue, “pure competition involves a very large number of firms producing a standardized product” (McConnell & Brue, 2004)...
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Within a pure competition, new firms may very easily enter and exit the industry. Pure competition is considered rare and its market model is highly pertinent. The markets for “agricultural goods, fish products, foreign exchange, basic metals and stock shares” are among the few industries which closely identify pure competition market structures (McConnell & Brue, 2004)...
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