Type of Market Structure:
- Oligopoly
- Only few large seller in market (their quantity can calculated)
- Difficult exist and entry market but not difficult as perfect monopolitic competition
- pricing influenced by other oligopoly firm
- It has subtitute product
- In long run super normal
- Price are determine by two ways
- competitor pricing
- cartel (associated) < -- IATA ( body that determines the price )
- For example :
- Air Asia, Firefly, Air Lines
- Celcom , Digi, Mobile
- Tesco, Giant, Crefore
- Petronas, Petron etc
2. Monopolitic Competition
- Many buyer in market
- Many seller in market but not many as perfect competition
- Product not homogeneous but differentiated physically ( creativity, design, types of material used ) or psychology ( advertising, publisity, ranking )
- Free entry and exist a market but not easy as perfect competition
- Existance of known price competition.
- One firm can lower the price without effecting other
- For example:
- Detergen
- Flour
- Cooking oil
3. Perfect Monopolitic Competition
- Single seller and large buyer
- For example:
- KTMB
- ASTRO
- TNB
- Put in any price,but the customer will still be paying
- Corncern a sports
- Product not subtitute (water, and electricity)
- the constraints into the market
- High capital cost
- regulation varience
- control over raw materials
- in the long run , firm will obtain supernormal profit because their price maker
4. Pure Competition / Perfect Competition
- Large number of sellers and buyers ( too many customrs )
- Price determine by market ( market determined prices )
- Product are homogeneous
- The buyer cannot identified which suppliers the product come from
- Free regulation varience and low capital ( free entry and exist a market )
- Many competitor
- For example:
- Supermarket's
- Restaurant's
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