Types of markets

Question 1

Perfect competition

Answer 1

Perfect competition is a type of market structure where all companies are selling the same product, and because of having no control over their product prices, they tend to be price takers. Consumers have full and perfect knowledge on the products that are going to sell

Question 2

Price taker

Answer 2

A price-taker is an individual or company that must accept current prices in a market.

Question 3

Monopolistic market

Answer 3

A monopolistic market structure has the features of a pure monopoly, where a single company fully controls the market and determines the supply and price of a product or service. (Non-competitive)

Question 4

Oligopoly market

Answer 4

Are markets dominated by a small number of suppliers. Some oligopoly markets are competitive, while others are significantly less. e.g oil industry

Question 5

Monopolistic competition

Answer 5

Monopolistic competition is a type of market structure where many companies are present in an industry, and they produce similar but differentiated products.

Question 6

Free market

Answer 6

The free market is an economic system based on supply and demand with little or no government control.