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Four Market Models[pic] From most rivalrous to least combative: virginal Competition: Involves very full-size numbers of inviolables producing superposable products. Standardized product (a product identical to that of other producers--ex. maize or cucumbers). o no attempt to advertise or differentiate Free Entry and Exit: no world-shaking legal, technological, financial, or other obstacles prohibiting new firms from selling their output in every competitive market No control everywhere the price: worth Takers (i.e. the firms have no market power) . o The individual firm has very little to no daze on the market. entreat is perfectly elastic. Maximizes productive and allocative efficiency. ex. Agriculture saturated competition markets do non rattling exist. Note: Pure competition does not actually exist in our society, and the land persistence is the closest industry t o being strictly competitive. The gauzy competition model is employ as a cadence to evaluate the efficiency of our preservation (something to compare to and help our brain of economy.) Monopolistic Competition: Involves large number of firms, but not as many as in pure competition. Produces tell products (ie.

clothing, furniture, books) o Nonprice competition - a selling strategy in which firms try to distinguish their product or service on the basis of attributes such as design and workmanship (product differentiation) o Focuses mostly on advertising, trademark n ames, and trademarks Firms can easil! y assent or leave this market, although not as easily as firms in a purely competitive market. Imperfect Competition. trammel control over prices o ex. retail trade, dresses, shoes Oligopoly: Involves a few firms that exert considerable bias over the industry Produces either standardized or differentiated products. NONPRICE contestation: wildness on...If you want to get a full essay, social parliamentary law it on our website: BestEssayCheap.com

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