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Learn the toughest concepts covered in Microeconomics with step-by-step video tutorials and practice problems by world-class tutors

Perfect Competition

Introduction to the Four Market Models

Keep this sheet handy! We will keep adding information over the next several chapters.

Four Market Model Summary

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Hey guys, all right, now, we're going to learn about the four different market models. We've learned about one already. Quite a bit perfect competition. That's gonna be the focus of this unit, but we're also going to move on to other market structures as well. So why don't we go ahead and define what these are real quick? Alright. So, like I said, we're gonna focus on perfect competition first, but we're also going to learn about these three other ones. We're gonna learn about monopolistic competition, oligopoly and monopoly. And when we talk about market structure, one of the key defining factors is the number of suppliers in the market. That's how we define our market structure by the number of suppliers. All right. So what we have here is kind of a summary sheet that we're gonna fill in as we go through the next several chapters. Um, but for now, what I want to do is show you how we define these market structures based on the number of suppliers. So the perfect competition. This is the one we've dealt with before. The number of suppliers in perfect competition. Remember it was a lot right? We were saying that there was a lot of suppliers and a lot of buyers. So we're gonna say that there's almost infinite in perfect competition. There's supposed to be just so many that we can't we just can't count them. All right. In monopolistic competition. There's also many suppliers, but perfect competition is supposed to be just like infinite, just about right? So there's still many monopolistic competition in oligopoly. We're gonna say there are a few. So, we're going to focus more on like two firms when we talk about oligopoly, but it could be anywhere, you know, 26, 10. There's not really a fine line. There just has to be few. And then finally, the monopoly that's gonna have just one supplier. All right. So, what we're gonna do is we're gonna dive into perfect competition now, and then we're gonna revisit this sheet at the end of the chapter, um and we'll fill in this little summary. All right. So, what I want you to do over the next several chapters, we're gonna keep this sheet handy because we're gonna be comparing and contrasting these different market structures and we're gonna have all our summaries right here. Now, one more little warning this sheet isn't gonna have everything you need to know about these. Right? So, we're gonna cover a little more depth. But these are some of the big highlighted topics and you'll be able to compare and contrast them. Alright, so, let's go ahead and dive into perfect competition. Let's do that. Now