The marketplace is big competition with producers competing against each other for customers. They try to give the best prices and best products so when a customer is ready to spend money, the customer will spend it on them.
Monopoly¶
Monopolistic market is where there is only one seller of a product and competition at all which means if it’s a product consumers need, the producer can charge whatever the price they want.
Monopsony¶
Monopsony is a market situation in which there is only one buyer so sellers have to compete extra hard to make the best product at the best price. An example of this is aircraft carriers because the only buyers of aircraft carriers are governments.
Oligopoly¶
Oligopolistic market is a different type of a market where the competition is limited to three to five firms. A good example is aircraft manufacturing because it is very hard and expensive so only a few large companies compete against each other.
Oligopsony¶
An oligopsony is a market situation in which the number of buyers is small while the number of sellers could be large. This typically happens in a market for inputs where numerous suppliers are competing to sell their product to a small number of buyers. Oligopsony is a form of imperfect competition.
Comment