Western Economics - Comparison of Four Market Structures (Short Answer)
Perfectly competitive market: a single buyer and seller cannot affect the market price, the condition is that there are many Small-scale sellers and buyers, homogeneous products, free flow of market and resources in and out, and perfect information.
Complete monopoly market: In a specific period and region, there is only one producer or seller of a product, and the condition is that entry and exit into the market are restricted by government or legal social, policy or regulations. This The production of various products has corresponding technical and resource constraints, there are economies of scale in production, and there are other obstacles to entering the market.
Monopolistic competition market: Multiple small-scale producers in the market produce similar products with differences. The key point is that the products are monopolistic when they are first produced, but they will gradually be imitated and enter competition.
Oligopoly market: A few large manufacturers occupy a majority of the market share of a certain product or industry. In an oligopoly market, changes in the output of a single manufacturer will significantly affect the output of the entire market. What are the four types of market structures that empirical economics classifies?
1: Collaborative distribution structure of production and products:. 2: Free trade structure for goods. 3: Monopoly structure of assets, capital or commodities. 4: The joint venture share structure of the enterprise. Economics short answer questions: The definition and characteristics of a perfectly competitive market structure. Online, etc.
The market with the most extreme competition is called a perfectly competitive market, also called a pure competitive market, which means that competition is sufficient without being subject to A market structure that blocks any obstacles and disruptions.
Features:
⑴ There are a large number of manufacturers. The number of manufacturers in the market is so large that the output of a single manufacturer accounts for a very small share of the total market supply, and changes in the manufacturer's output cannot affect the market price. ⑵Manufacturers are completely free to enter and exit the industry. This kind of industry is the most competitive. If profits and wages in this industry are higher than in other industries, capital and labor will enter the industry freely without hindrance. ⑶All manufacturers produce exactly the same products. In economics, it is also said that the products of all manufacturers are "homogeneous." Therefore, in a perfectly competitive market, there is no trademark and no need for advertising.
⑷Both manufacturers and consumers have complete information about the market. It means that both manufacturers and consumers understand the information and knowledge related to their own interests. The assumption of complete information ensures that manufacturers and consumers make choices that maximize their own interests. Explain the characteristics of the four market types according to the standards of economics for classifying market structures
Western economics is divided into:
1. Perfect competition
2. Monopolistic competition
3. Oligopoly
4. Complete monopoly
Criteria: 1. The number of competing manufacturers in the market, 2. The products produced by these manufacturers differences, 3. Do you have the ability to manipulate market prices? What are the types of market structures? Answer based on "Managerial Economics"
Perfect competition, monopoly, monopolistic competition, oligopoly
Brief answer to the formation conditions of each of the four market structures
Four types Market structure refers to perfect competition, monopoly, monopolistic competition and oligopoly. The main basis for dividing these four market structures is: 1. The number of companies within the industry; 2. The degree of differentiation of the products of companies within the industry; 3. The size of entry and exit barriers. Specifically, the four market formation conditions are as follows:
Perfectly competitive market: 1) There are many buyers and sellers in the market, and no buyer or seller has the power to control product prices; 2) The products produced by enterprises in the market are homogeneous; 3) Resources can flow freely, that is, enterprises can freely enter and exit the market; 4) Both buyers and sellers have full understanding of market information.
Monopoly market: 1) *** exercises monopoly by virtue of its power; 2) Enterprises completely control the key resources for the production of a certain product; 3) Monopoly formed by using patent rights; 4) Natural monopoly, that is, within the industry Only one company can provide the entire market with a product at a lower cost than more companies.
Monopolistic competition market: Monopolistic competition market is the same as perfect competition. There are many buyers and sellers in the market, and companies can easily enter and exit the market; however, the products produced by companies in monopolistic competition market are differentiated. Is the main condition for the formation of the market,
Oligopoly market: Oligopoly market is somewhat similar to monopoly market. The main reason for its formation is the difficulty of entry and exit. The difference is that there are a few companies in the market. Gao Hongye, Western Economics Micro: Why is monopoly an inefficient market structure?
Because without competition, improvements in product quality and technology will not be market-oriented. Product quality is the life of an enterprise, so the disadvantage caused by monopoly is the decline in the competitiveness of the product itself.
Monopoly is relative, and the development of market economy is now a globalized competition. Monopoly is regional and cannot last long. Characteristics of the four markets in Western economics
It should be called four hypotheses!
The prerequisite for every theory in Western economics is that a series of hypotheses must be set about the variables in reality, mainly to make it simpler to make the variables not the variables of the analyzed objects. However, setting such variables often leads to major failures in the application of these economic theories in reality.
The most common assumptions are as follows:
1. Rational people
2. Perfectly competitive market
3. Information play Completely symmetrical
4. All market participants have sufficient understanding of the market system
After answering, I hope you will give some points! Comparison of Western Economics: Capital Allocation Methods of Market Economy and Planned Economy
Supplement: The ideal planned economy (optimal resource allocation). The correct implementation of the ideal planned economy requires a correct price system. The ideal price actually reflects a ratio between various industries. This ideal price is called "objective restrictive cost conditions" by Soviet economists (called shadow prices by Western economists). In a centralized control system, if you want to achieve diversification, you must find the conditions for the success of separate decisions in centralized control, and this condition has been proven to exist in theory. This is linear programming, which means that Hayek's What is said about the use of personal knowledge is wrong. So what is this condition? It is a correct price system, and the ideal planned economy has a unique interest rate. The task of the Central Planning Bureau is to calculate and issue "objective cost control conditions" based on the capabilities and technical levels of the existing industrial system and the resource status of the existing economy (the production cycle of the most basic resources is very long). Let the enterprise stare at it for economic accounting through a certain program, that is, first choose the method with the least consumption of objective constraints (list the wire gauge equation according to the different constraints of each enterprise, and calculate the minimum and maximum values ??through the process ), thereby achieving optimal resource allocation. Of course, these are affected by the computing power of the computer. Briefly describe the characteristics of the four types of markets (Western Economics) 20 points
Perfectly competitive market, perfect monopoly market, monopolistic competition market, oligopoly market. Perfectly competitive market
A perfectly competitive market in the economic sense is an ideal model. Since there are countless producers and consumers, the output of each producer and the demand of consumers are insignificant. The actions of each participant will not affect the entire market. The agricultural product market and the stock market can approximately satisfy the assumption of a perfectly competitive market.
Characteristics of a perfectly competitive market:
(1) Manufacturers are price takers;
(2) Manufacturers are completely free to enter and exit the industry;
(3) All manufacturers produce products with exactly the same characteristics;
(4) Both manufacturers and consumers have complete information about the market.
(1) Ideal market structure.
1._ The definition of a perfectly competitive market: an idealized market where exchange and competition are free from any resistance and interference
2._ Assumptions of a perfectly competitive market:
1)_ Every product or service market has many producers and consumers
2)_ Every product or service Services are homogeneous
3)_ The costs and benefits of all products are internalized
4)_ Both producers and consumers have sufficient information
5)_ There are no transaction costs, and entry and exit from any market are costless
6)_ All products and services are in the cost increasing stage
(II )Perfectly competitive market and production efficiency
1._ Demanders of production factors face the relative price of the same factor, which is reflected in the image as the slope of the budget constraint line.
2._ The relative prices of production factors change with market demand until supply and demand are equal.
3._ Every producer pursues the minimization of production costs, and its decision is that the slope of the budget constraint line is equal to the producer, etc. The marginal technical substitution rate of the production curve.
4._ Under market equilibrium conditions, the marginal technical substitution rate of each producer's product must be equal to the relative price of factors, meeting the requirements of production efficiency.
(3) Perfectly competitive market and exchange efficiency
1._ Demanders of products or services face the relative price of the same factor, which is reflected in the image as the slope of the budget constraint line.
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2._ The relative price of a product or service changes with market demand until supply and demand are equal.
3._ Under given budget constraints, each consumer pursues To maximize utility, the decision is that the slope of the budget constraint line is equal to the slope of the consumer's indifference curve.
In market equilibrium, there must be an editing substitution rate for each consumer equal to the relative price of the product. price, thereby meeting the requirements of exchange efficiency.
(4) Perfectly competitive market and exchange efficiency.
1._ Under the given product quantity and structure conditions, the market will produce An equilibrium relative product price.
2._ Under this relative price situation, in order to maximize income, producers must satisfy that the marginal conversion rate of the product is equal to the relative price.
3. _ If the product combination selected by the producer does not match the product combination at which the existing relative price is formed by the consumer, the market will adjust the relative price until the relative price formed is equal to the marginal conversion rate of the product, thus meeting the requirements of exchange efficiency.
Definition of a perfect monopoly market
A perfect monopoly market is an extreme form of market type that is opposed to a perfectly competitive market. A complete monopoly market is also called a pure monopoly market, generally referred to as a monopoly market. The word monopoly comes from Greek, meaning "one seller", which means that one person controls the entire market supply of a product. Therefore, a complete monopoly market refers to a market type with only one supplier.
The assumptions of a complete monopoly market have three aspects: first, the goods, services or resources in the entire market are provided by one supplier and there are many consumers; second, there are no close substitutes and consumption It is impossible for investors to purchase substitutes with similar performance and other aspects; third, entry restrictions prevent new enterprises from entering the market, thus completely eliminating competition.
Basic characteristics of a completely monopolized market
1. The enterprise is the industry
2. Products cannot be substituted
3. Determine the price alone
4 , there are barriers to entry
Monopolistic Competition Market Monopolistic Competition Market (Monopolistic Competition Market)
1. Monopolistic competition market: It is a kind of monopoly and competition, neither a complete monopoly nor a complete monopoly. Perfectly competitive market. They are similar but not homogeneous markets.
Conditions:
(1) The existence of product differences: differences in quality, packaging, brand name and sales conditions of the same product. is the most basic condition.
(2) There are many manufacturers. What is remarkable is: light industrial product market
For example: the difference between Toshiba color TV and Panasonic color TV
Generally, there is no difference between Henan wheat and Hebei wheat.
2. Characteristics of the monopolistic competition market
There is a monopoly and there are differences in products;
A certain company sets its own price first.
There is competition (there is substitutability between differentiated products);
Enterprises adjust prices according to the market.
Characteristics of monopolistic competition
Large number of companies
Easy to enter and exit the industry
Product differentiation
Companies ignore the reactions of their competitors
Oligopoly market Oligopoly market (oligopoly market)
1. Oligopoly: A few companies control the entire market, and the goods they supply account for the market share The largest and most important share.
Also known as oligopoly, it refers to a market structure in which a few manufacturers control the production and sales of products in the entire market. The typical characteristic of this market is that the behavior of manufacturers interacts with each other, so that manufacturers' decisions must take into account the reactions of competitors. According to product characteristics, the oligopoly market can be divided into two categories: pure oligopoly industry and differentiated oligopoly industry. In a pure oligopoly industry, manufacturers produce undifferentiated products; in a differentiated oligopoly industry, manufacturers produce differentiated products. According to the way manufacturers act, the oligopoly market is divided into different types of collusion and independent action. Oligopoly industry is considered to be a relatively common market organization.
Oligopoly is a market structure between complete monopoly and monopolistic competition. (The number of enterprises is very small. Based on the concentration rate of four factories: less than 20 is a competitive market, and 20-39 is a weak oligopoly market. , 40-59 is an oligopoly market, and above 60 is a strong oligopoly market.)
The price in the oligopoly market is not entirely determined by the market supply and demand.
In the oligopoly market, Before taking action, any manufacturer must carefully study its opponents and consider their possible reactions.
(Enterprises are neither "price takers" nor "price setters"
Rather, they are "price searchers".)
When making decisions, oligopolies must also consider the issues of marginal revenue and marginal cost. However, the marginal revenue situation is often difficult to determine because of the differences between enterprises. Directly targeted competition.
There is no definite, logical equilibrium state in an oligopoly market, and there is no general oligopoly price theory. There are only many different models that assume specific behaviors. Draw different conclusions.
Characteristics:
(1). Very few enterprises
(2). Interdependence
(3 ). Products are homogeneous or heterogeneous
(4). Difficulty in entry and exit