Characteristics
Behavior
Response to Profit Condition
Market
Structure
Number
Of
Firms
Entry and
Exit
Condition
Product
Type
Price
Strategy
Promotion
Strategy
Profit
Break- Short-
run even
Loss
Long-
run
Loss
Perfect
(Pure) Very
large
Number
Easy Standard Price
Taker None Reduce No
Price
Entry Action Price
Raise Exit
Monopoly One Blocked Unique Price
Maker
Regulated
None ? No
Action Price
Raise Subsidy
Monopolistic
Differentiated
Products
Large
Number
> 20
Easy Differen-
tiated Price
Maker
Features
Large
Amount
We are #1
Reduce No
Price
Entry Action Price
Raise Exit
?
Few May be Standard Interde- Reduce No
Oligopoly < 20 Impeded or
Unique pendant Price
Entry Action Price
Raise Exit
May
Take
Time
Note: Short-Run loss is when
AR < atc, and,
AR > avc.
Long-run loss is when
AR < atc, and,
AR < avc.
