Market Structures: Perfect Competition to Monopoly

## The Many Faces of Markets Not all markets work the same way! Economists group markets into different structures based on how many firms there are, how easy it is to enter, and how much control over price each firm has. ### Perfect Competition Many firms, identical products, easy entry, and no control over price. Think of a farmers' market with many sellers. ### Monopolistic Competition Many firms, similar but not identical products (like different brands of cereal). Firms have some control over price. ### Oligopoly A few large firms dominate the market (think smartphones or airlines). Decisions by one company can impact the whole market. ### Monopoly Only one firm controls the market, like a local water utility. Monopolies have the most power over price and output. ### Why It Matters Market structure affects prices, consumer choice, efficiency, and innovation in the economy.