- Perfect Competition – many firms, freedom of entry, homogeneous product, normal profit.
- Monopoly – One firm dominates the market, barriers to entry, possibly supernormal profit.
- Oligopoly – An industry dominated by a few firms, e.g. 5 firm concentration ratio of > 50%
- Monopolistic Competition – Freedom of entry and exit, but firms have differentiated products. Likelihood of normal profits in the long term.
- Contestable Markets – An industry with freedom of entry and exit, low sunk costs. The theory of contestability suggests the number of firms is not so important, but the threat of competition.
Page created by: Tejvan Pettinger,November 28, 2012