Economics

Introduction to Topic 4

My Story: Competition and Market Structures

Although free enterprise is based on the idea of competition, different market structures offer degrees of competition. Pure competition is a structure with many sellers who have no control over their prices. Monopoly is a market structure with only one seller who has a great deal of control over prices. Between those extremes are oligopoly, with a small number of sellers who have some control over prices, and monopolistic competition, with many sellers who have little control over prices.