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Market Structures Perfect Competition?Ideal, but theoretical Large number of buyers and sellers Well-informed Independent Identical products Freedom to get into and out of business Perfect competition is really a baseline used to judge other market structures Market Structures (cont.) Monopolistic Competition?Similar to perfect competition except that the products are not identical Product differentiation?real or imagined is used more than price to get customers Oligopoly?a few large sellers dominate the industry These companies tend to copy each other so that no one will have the advantage Example: stuffed crust pizza, ?combination meal?, ?ice beer? Collusion and price-fixing Market Structures (cont.) Monopoly?A market with only one seller

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