TYPES OF MARKETS

TYPES OF MARKETS

three to four page
  • Students must prepare a three to four page typewritten double-spaced paper on a current macroeconomic topic that is pertinent to class material. This can be chosen from the textbook, newspapers, magazines, or current economics periodicals.
  • Students will be expected to analyze and evaluate the issue or topic and provide recommendations. Here are some sample topics:
  • Countries that do not believe in comparative advantage
  • How do people respond to economic incentives?
  • Stories of positive or negative externalities
  • What’s the best healthcare system in the world?
  • Examples of behavioral economics
  • Differences between monopolies, monopolistic competition, oligopolies, and the perfectly competitive market
  • Income inequality throughout the world
ANSWER PREVIEW

They are driven by different characteristics and assumptions which influence decision making in companies. However, all these market structures all operate under the assumption of maximizing profits, whether there exists high or no competition at all. However, some of these market structures are not realistic such as the perfectly competitive market. Instead, they exist as theoretical constructs which may characterize an economy.

Monopolies

Monopolies refer to the type of market structure where only one company controls the market. In such a circumstance, buyers do not have alternative sellers; hence, the monopoly holds the ultimate power over the market and its products. Therefore, this type of market structure takes advantage of their power and the buyers by increasing prices of goods, hence experiencing higher profits. However, since they are not desirable, they are often regulated by the government to avoid consumer manipulation (Bresnahan and Reiss, 2016). The monopoli…

(1000 WORDS)
Scroll to Top