Product Markets
Economics · Market Structures
Syllabus tag: KCSE | Business Studies | Form 3 | Topic 18 Product Markets
Lesson objectives
By the end of this topic, you should be able to:
- Define a product market and name the market structures.
- Describe perfect competition, its features and assumptions.
- Describe monopoly, price discrimination and the sources of monopoly power.
- Describe monopolistic competition and oligopoly, including the kinked demand curve.
Summary
A product market or market structure describes how many sellers there are and how much control each has over price. Perfect competition has many sellers with no control; monopoly has one seller with great control; monopolistic competition has many sellers with slight control through differentiation; and oligopoly has a few large sellers who must watch each other.