I have been hired as a consultant to look at the various market structures. I will be providing my analysis and give information so there is a clear understanding of the structures of many businesses in the city. There is the perfect competition, monopolistic competition, oligopoly and monopolies all over the city. Barriers are imminent with entry and exit for some of these market structures and there are different price elasticity’s in each.
“Perfect competition is characterized by large numbers of buyers and sellers, homogeneous products, ease of entry into and exit out of the industry, perfect knowledge, and mobility of resources. Profits are the force that drives the perfectly competitive model to efficiency. The firm is seeking not efficiency