Mataracy
VIP Contributor
There are two point to keep in mind as I want want to explain.
First, a market structure is a model,a simplification of reality. If any industries fit neatly in to one market structure or another. Economists use the four models to describe how firms might behave under certain conditions.
They can then modify the models to improve their understanding of how firms behave in real life
Second, the fact that the term competition is present in the name of only two of the models does not mean that competition occurs only in conditions of perfect competition and monopolistic competition.
Thirdly, Competition is pervasive .
Fourth, It occurs in all market structures and in all economic systems.
First, a market structure is a model,a simplification of reality. If any industries fit neatly in to one market structure or another. Economists use the four models to describe how firms might behave under certain conditions.
They can then modify the models to improve their understanding of how firms behave in real life
Second, the fact that the term competition is present in the name of only two of the models does not mean that competition occurs only in conditions of perfect competition and monopolistic competition.
Thirdly, Competition is pervasive .
Fourth, It occurs in all market structures and in all economic systems.