About This Chapter
Economic Market Structures - Chapter Summary
What is a monopoly? An oligopoly? How does a command system work? This chapter answers these questions and discusses even more information about economic markets. The lessons define relevant terms, explain theories and provide details about the effects of certain markets on the consumer. The accompanying self-assessment quizzes allow you to test your knowledge and readiness in moving to the next topic. Once you have completed your review, you should be able to:
- Discuss what perfect competition means in economics and explain Adam Smith's 'invisible hand'
- Explain what a monopoly is and its effect on consumers
- Describe monopolistic competition
- Identify natural monopolies
- Define and provide examples of an oligopoly
- Provide details about the command system in economics
- Discuss concepts of capitalism
- Detail game theory and its relationship to Nash equilibrium
- Point out some barriers to entry in economics
1. Perfect Competition in Economics & Adam Smith's 'Invisible Hand'
In this lesson, you'll learn how consumers and producers interact in a perfectly competitive economic system. You'll also be introduced to how Adam's Smith concept of an 'invisible hand' can help keep such systems in line.
2. What is a Monopoly in Economics? - Definition & Impact on Consumers
In this lesson, you will learn about monopolistic markets and what a monopoly means for producers and consumers. After this lesson, you will understand why the name of one of our all-time favorite board games really makes perfect sense.
3. Understanding Monopolistic Competition in Economics
In this lesson, we'll learn about monopolistic competition. This type of competition can be found in a free market where products are differentiated, but not so differentiated that any single firm has the power to influence market prices.
4. Natural Monopoly in Economics: Definition & Examples
Find out what a natural monopoly is and why they exist. Learn about some everyday services that you use that are provided by companies that are natural monopolies.
5. What is an Oligopoly? - Definition & Impact on Consumers
In this lesson, we will discuss a market structure that is actually quite common in the United States, as well as most other industrialized countries: oligopolies. Oligopolies are the market structures that sit somewhere between a monopoly and perfect competition. In this lesson, we will find out how.
6. Understanding a Command System in Economics
In this lesson, we'll discuss a command system: one of the often tried, but mostly failed, economic systems of the last century. Because it requires an individual or group to make decisions based on who makes what, there are important challenges of a command system.
7. Capitalism and the Free Market: Definition & Limitations
Capitalism is an economic system that has played a dominant part in building the world in which we currently live. In this lesson, you'll learn about some key concepts of capitalism, as well as its limitations.
8. What is Game Theory? - Explanation & Application in Economics
Economics is just as much about consumer and producer behavior as it is about finance or the allocation of resources. With that in mind, this lesson will explain one of the most fundamental tools economists use to frame competitive decision making.
9. Nash Equilibrium & Game Theory
The 2001 movie, 'A Beautiful Mind,' told the story of John Nash, a Nobel Prize-winning economist who theorized the Nash equilibrium. In this lesson, we'll learn about Nash equilibrium by studying game theory.
10. Barriers to Entry in Economics: Definition, Types & Examples
Economic barriers to entry are part of the reason some companies thrive and others fail. Learn what barriers to entry are and why they are so important to understand before entering a specific business or market. Read about some current-day examples.
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- Producers & Production in Microeconomics
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