MARKET STRUCTURE
Transcription
Hello everyone and welcome to today's video where we are going to talk about market structure or market organization okay. So, this basically refers to the number of suppliers and buyers in a particular market and how they are organized and the first type of market structure is known as an Ollie ngapali This is where there are few suppliers for example, there are three or so, suppliers okay for example, if you look at SIM card or telecommunication providers in most country, you get to have only around three or four. So, that is known as an oligopoly then we have another form of market organization known as a monopoly This is where we only have one supplier of a particular product and there is no close substitute for that particular product okay. This may include things like if you look at the electricity supply in most country get that is only allocated to one company okay. Then next you have another form of market structure known as perfect competition where there are many suppliers and many many suppliers and many buyers okay. So, that you get in most cases the price is set by the supply and demand as opposed to the monopolies where a company is in most cases a company determines the price which may be even far from the demand or the supply but since people have no other alternative, they have to go with their price set by the company. Then lastly, we have another form of of market structure known as monopolistic competition. Okay, this is whereby you have businesses that are close substitutes. Okay, so there are many businesses, but the monopoly comes in terms of of the brand, okay, thinks of think of phones for example, okay, if you an iPhone is only produced by a parent company, so they have monopoly over the brand, but they have to check with their competitors before they set the price. Okay. So it's almost like a hybrid between a monopoly and perfect competition. Have the best example is upside is telephone companies. You can also think of car companies. Okay? Jaguar is only produced by one company. Okay. Toyota is only produced by one company so they hold monopoly over the brand. Okay, if you want a Rolls Royce, it's only produced by one company. So that gives them their monopoly over the brand, but they have passion price control. Okay, so that's all about the market structure. See you guys in the next video.
