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market

can distinguish basically four types of market in terms of number of speakers and related thus, the ability of these to influence the price.

In real life, markets are generally present at the same time characteristics of several of these models, though one is usually dominant.

a) Perfect Competition

products offered by different vendors are basically identical. A buyer will acquire an asset almost like a vendor or another.

The number of buyers and sellers is very large so that each individual has no ability to influence the price. It says they are "price takers."

An example can be packaged milk market. When a buyer goes to the supermarket will usually find a variety of brands milk quality is virtually identical and similar prices.

A producer may sell its brand of milk at a price well above its competitors as consumers replace this brand for some of the competition.

b) Monopoly

In this market there is only one seller so that, unlike the previous case, completely dominates the market and can pricing of its products.

In some countries there are still a single phone company completely controls its market, setting prices for calls.

c) Oligopoly

In this market there are a limited number of vendors so you do not have the total control that has a monopoly but they are not mere " price takers. "

Being a small number of vendors it is possible to agree among themselves to try to fix the price that suits them (to the detriment of consumers).

For example, the oil sector is dominated by a small number of producing countries grouped in an association (poster) called OPEC exerts a major control on the price per barrel.

d) monopolistically competitive market:

There are many sellers but their products are not completely identical, there are differences between them. Therefore, the buyer will not buy another product just like the competition.

This will allow each vendor to exercise some control over the price of your product.

For example, publishers of books. All offer book but every book is different. A reader does not give you as buying a book by an author or another but seeks a work. This allows publishers to have some leeway in setting the price books.

Market Efficiency

The efficiency of a market model, either perfect competition, monopoly, oligopoly or monopolistic competition can be measured through derive benefit buyers and sellers.

To compare the efficiency of these models is that market which one do with this benefit is maximized. The demand curve reflects the decisions of thousands of potential buyers.

Each buyer is represented by a point on the demand curve. This point represents the maximum price that the buyer is willing to pay, and that price is merely the maximum value to the buyer that good.