Market Structure

A market structure defines the economic environment by which a business finds itself in. How much competition is there? What price pressures are there? Where is the competition pricing and pitching its products at? All such questions help us to define market structures including oligopoly, monopoly, and perfect competition.

Monopsony Definition

Monopsony Definition

A monopsony is where there is a sole buyer of a product, but many sellers. This contrasts with the similarly named monopoly, whereby there is only one seller and many buyers.

First Degree Price Discrimination

First Degree Price Discrimination

First-degree price discrimination is where a business charges each customer the maximum they are willing to pay. This price can vary from customer to customer as the business charges the very maximum in order for the customer to purchase their goods.

Monopolistic Competition Definition

Monopolistic Competition

A market that has Monopolistic structure can be seen as a mixture between a monopoly and perfect competition. Whilst monopoly and perfect competition are at completely different ends of the spectrum; monopolistic competition is somewhere in between.

monopoly game board

3 Types and 7 Causes of Monopoly’s

When looking at the causes of monopoly, it is important to first define what it is. The term monopoly originates from the Ancient Greek language. Monos, meaning “sole”. And Poleo, meaning “sell”. Roughly translated, it means “Sole Seller”. Any person or business who is the only seller in the market could be classified as having a monopoly.