Four types of market position

According to the relationship between competition and monopoly in the market, the market position of enterprises can be divided into perfect competition market, monopoly competition market, oligopoly market and complete monopoly market.

1. Perfect competitive market: A perfect competitive market refers to a market with only competitive factors and no monopoly factors. However, it is difficult to find a perfectly competitive market in real life, and there are only infinitely close perfectly competitive markets, such as agricultural products market.

2. Monopolistic competitive market: Monopolistic competitive market belongs to a market where monopoly and competitive factors coexist, but there are many competitive factors. Such a market is infinitely close in real life, such as retail, such as drinks and toothpaste.

3. Oligopoly market: Oligopoly market also belongs to the market where monopoly and competition factors coexist, but there are more monopoly factors. This kind of market is a typical manufacturer such as automobile, airplane, oil, communication and other industries.

4. Complete monopoly market: A complete monopoly market refers to a market where the whole industry is monopolized by a single manufacturer and there are no other manufacturers and their competition. Such markets are typical, such as coins (only the central bank in China can issue currency), electricity (such as China power grid in China), railways (such as China Railway Corporation) and so on.