Title: Market Models: Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly
Headings: Market Models: Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly
Market Models: Pure Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly
Pure Competition Is Best for the Consumer

Content: pure competition, monopolistic competition, oligopoly, and pure monopoly. Because market competition among the last 3 categories is limited, these market models imply imperfect competition. In a purely competitive market, there are large numbers of firms producing a standardized product. Market prices are determined by consumer demand; no supplier has any influence over the market price, and thus, the suppliers are price takers. The primary reason why there are many firms is because there is a low barrier of entry into the business. The best examples of a purely competitive market are agricultural products, such as corn, wheat, and soybeans. Monopolistic competition is much like pure competition in that there are many suppliers and the barriers to entry are low. However, the suppliers try to achieve some price advantages by differentiating their products from other similar products. Most consumer goods, such as health and beauty aids, fall into this category.