{"id":4006,"date":"2013-06-27T16:52:06","date_gmt":"2013-06-27T16:52:06","guid":{"rendered":"http:\/\/www.mometrix.com\/academy\/?page_id=4006"},"modified":"2025-11-28T11:40:47","modified_gmt":"2025-11-28T17:40:47","slug":"market-forms","status":"publish","type":"page","link":"https:\/\/www.mometrix.com\/academy\/market-forms\/","title":{"rendered":"Market Forms"},"content":{"rendered":"<h1>Market Forms<\/h1>\n<div class=\"lyte-wrapper fourthree\" title=\"Market Forms\" style=\"width:420px;max-width:100%;margin:5px auto;\"><div class=\"lyMe\" id=\"WYL_K7-Mx-fqlI0\"><div id=\"lyte_K7-Mx-fqlI0\" data-src=\"https:\/\/www.mometrix.com\/academy\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FK7-Mx-fqlI0%2Fhqdefault.jpg\" class=\"pL\"><div class=\"tC\"><div class=\"tT\">Market Forms<\/div><\/div><div class=\"play\"><\/div><div class=\"ctrl\"><div class=\"Lctrl\"><\/div><div class=\"Rctrl\"><\/div><\/div><\/div><noscript><a href=\"https:\/\/youtu.be\/K7-Mx-fqlI0\" rel=\"nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.mometrix.com\/academy\/wp-content\/plugins\/wp-youtube-lyte\/lyteCache.php?origThumbUrl=https%3A%2F%2Fi.ytimg.com%2Fvi%2FK7-Mx-fqlI0%2F0.jpg\" alt=\"Market Forms\" width=\"420\" height=\"295\" \/><br \/>Watch this video on YouTube<\/a><\/noscript><\/div><\/div><div class=\"lL\" style=\"max-width:100%;width:420px;margin:5px auto;\"><\/div>\n<div class=\"accordion\"><input id=\"transcript\" type=\"checkbox\" class=\"spoiler_button\" \/><label for=\"transcript\">Transcript<\/label>\n<div class=\"spoiler\" id=\"transcript-spoiler\">\n<p>Let&#8217;s take a look at the seven main types of market forms. <\/p>\n<p>The first is <strong>perfect competition<\/strong>. This is when you have many producers of essentially the same product. There&#8217;s competition between the companies as each tries to produce a better quality product at a lower price.<\/p>\n<p><strong>Monopolistic competition<\/strong> is similar to perfect competition. It&#8217;s when you have many producers that have a product, but each company only has a small market share of the products on the market. There could be many companies producing widgets, but Company A only produces 5% of the widgets on the market.<\/p>\n<p>A <strong>monopoly<\/strong> is when there is only one producer of a product. The producer can raise the price of the product very high because if a consumer wants to buy that product, they have to buy it from that one producer.<\/p>\n<p>A <strong>monopsony<\/strong> is when there&#8217;s only one buyer of a product. An example of this is military equipment. There is some military equipment that is produced that the US government is the only buyer of. In the case of a monopsony, the producer must make sure they are producing something the buyer wants, because if the buyer stops purchasing their product, they are going to be out of business.<\/p>\n<p>A <strong>natural monopoly<\/strong> is when there&#8217;s only one producer of a product, like in a monopoly, but in this case, due to economies of scale, the efficiency of the product goes up with the more products that are produced.<\/p>\n<p>An <strong>oligopoly<\/strong> and <strong>oligopsony<\/strong> are similar to a monopoly and a monopsony, just not as extreme. In an oligopoly, there are few producers of a product. Instead of there just being one producer of a product in a monopoly, there are a few. In an oligopoly, there are several buyers of a product. All of those buyers still have a lot of control over what kind of product the producers make.<\/p>\n<p>That&#8217;s a brief look at the seven main types of market forms.<\/p>\n<\/div>\n<\/div>\n\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market Forms &nbsp;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":{"0":"post-4006","1":"page","2":"type-page","3":"status-publish","5":"page_category-economics-videos","6":"page_type-video","7":"page_domain-business"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/pages\/4006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/comments?post=4006"}],"version-history":[{"count":6,"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/pages\/4006\/revisions"}],"predecessor-version":[{"id":278980,"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/pages\/4006\/revisions\/278980"}],"wp:attachment":[{"href":"https:\/\/www.mometrix.com\/academy\/wp-json\/wp\/v2\/media?parent=4006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}