Market Structures – Economics Cheat Sheet (Comparison
Table Format)
Feature Perfect
Competition
Monopolistic
Competition Oligopoly Monopoly
# of Firms Many Many Few (2–10) One
Type of
Product
Identical
(homogeneous) Differentiated Either identical or
differentiated Unique
Barriers to
Entry None Low High Very High
Market Power None Some Significant Complete
Price Setting Price taker Some control Interdependence;
potential collusion Price maker
Examples Agricultural
markets
Restaurants,
clothing brands
Airlines, mobile
services
Utilities,
patented drugs
Efficiency Allocative &
productive efficient
Not fully
efficient Often inefficient Inefficient
(deadweight loss)
Non-price
Competition None High (branding,
ads)
High (ads, loyalty
programs)
Some (customer
service,
lobbying)
Long-run
Profits Zero Zero Possible sustained
profits High
Quick Definitions
Allocative efficiency: Producing what consumers want in the right amounts.
Productive efficiency: Producing at the lowest cost.
Price taker: Accepts market price; can't influence it.
Price maker: Can influence or set market prices.