The Oligopoly And The Perfect Competition Markets Essay

Introduction: There are many different types of economic markets nowadays. For example; the oligopoly and the perfect competition markets. Each market has its own factors and characteristics. In this research paper however; we will discuss and cover the monopoly market from the economic perspective. According to Parkin; â€Å"a monopoly market is a market which is characterized by producing a good or a service for which no close substitute exists and in which there is one supplier that is protected from competition by a barrier preventing the entry of new firms†. In addition; there are two types of strategies in which monopoly firms set for their selling for maintaining such monopoly state, these types are single-price monopoly strategy and price discrimination strategy. All of these strategies with the addition of factors of monopoly; are what shapes the monopoly market as it is. One well-known example of a monopoly firm is the Microsoft Corporation. Microsoft is a technological company which majorly sells technological services such as software programs and similar technological things. It is considered as a leading company in that area as it sells products for which no close substitutes can be found all around the world. Moreover, Microsoft is considered as a multinational and global firm which sells its significant products all around the world which gives limited or no space for competition, Which is also known as barriers to entry, for other firms. All of these factorsShow MoreRelatedMarket Structures : Perfect Competition, Monopoly, Monopolistic Competition And Oligopoly2078 Words   |  9 Pagesintroduce four market structures – perfect competition, monopoly, monopolistic competition and oligopoly, and their determinations of price and output. It also discussed the possibility for firms to generate profits in the short-run and/or in the long-ru n within these four market structures. 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