Answer to Question #302348 in Microeconomics for Muna

Question

(a)  What do we mean by a perfectly competitive market? Do you think that the example of ECG/NetCo fits this description? Is there another type of market that better characterizes the market for ECG/NetCo?

(b)  What are the types of market structures? Critically examine each of the types by highlighting the characteristics, similarities (if any) and differences (if any).

Answer 1

Perfect competition is a market structure in which all producers and consumers have complete and symmetric information and there are no transaction costs. In this type of ecosystem, a huge number of producers and customers compete with one another.

Yes ECG fits this description.

No, there are no other better market characterises the ECG.

(b)

4 Basic Market Structures. Perfect Competition, Monopolistic Competition, Oligopoly, Pure Monopoly.

Perfect Competition. Many (business) firms. Standardized Product. ... 

Monopolistic Competition. Many (business) firms. Differentiated Product. ... 

Oligopoly. Few (Business) Firms. ... 

Pure Monopoly. One (Business) Firm