Market Structures | A-Level Economics Notes
These revision notes cover everything you need to know about Market Structures for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since 2017.
What are the characteristics of a monopoly?
A monopoly exists when one firm dominates a market.
A pure monopoly is when a firm has 100% market share.
Monopoly power is considered to start from 25% market share by the Competitions and Markets Authority (CMA).
The characteristics of a monopoly market are:
- high barriers to entry & exit
- product differentiation
- imperfect information
As a result, firms are price-makers.
What are the characteristics of an oligopoly?
An oligopoly exists when a few firms dominate the market.
The characteristics of an oligopolistic market are:
- high barriers to entry & exit
- interdependence of firms
What are the characteristics of monopolistic competition?
The characteristics of monopolistic competition are:
- low barriers to entry
- slight product differentiation
What are the characteristics of perfect competition?
The characteristics of perfect competition are:
- no barriers to entry & exit
- homogenous products
- perfect information
As a result, firms are price-takers.
Summary questions
- What are the characteristics of a monopoly?
- What are the characteristics of an oligopoly?
- What are the characteristics of monopolistic competition?
- What are the characteristics of perfect competition?
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