Homework Help

What, if anything, do all firms in all four market structures have in common?

user profile pic

ghjghjgh | Student, Undergraduate | eNotes Newbie

Posted December 29, 2009 at 6:38 AM via web

dislike 1 like

What, if anything, do all firms in all four market structures have in common?

1 Answer | Add Yours

user profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted December 29, 2009 at 6:42 AM (Answer #1)

dislike 1 like

The only thing that all four market structures have in common is that firms in all four are trying to maximize profits or minimize losses.  And they all do this by producing at the quantity where marginal revenue equals marginal costs.

Other than that, there is nothing that they all have in common.

  • There are barriers to entry in monopoly but not in the others.
  • Firms in perfect competition sell homogeneous products (and firms in oligopoly can) the rest sell differentiated products.
  • There are many firms in monopolistic and perfect competition, only a few in oligopoly and one in monopoly.

 

Join to answer this question

Join a community of thousands of dedicated teachers and students.

Join eNotes