Comparing Market Structures

Type of Market	Perfect Competition	Monopolistic Competition	Oligopoly	Monopoly
Number of firms	Very many	Many/ several	Few	One
Freedom of entry	Unrestricted	Unrestricted	Restricted	Restricted or completely blocked
Nature of product	Undifferentiated	Differentiated	Undifferentiated or differentiated	Unique
Implications for demand curve	Horizontal: firm is a price taker	Downward sloping, but relatively elastic	Downward sloping. Relatively inelastic(shape depends on reactions of rivals)	Downward sloping; more inelastic than oligopoly. Firm has considerable control over price.
Average size of firms	Varies	Small	Small	Large
Possible consumer demand	Minimal	Mediocre	Large	Large
Profit making possibility	Minimal	Mediocre	Large	Large
Government intervention	High	Minimal	None	High
Example	Oranges, celery	Clothing stores	Heating and electrical appliances	Local water company