Chapter 7 Market Structures

If a single firm produced all computer software, life might be easier because all software would be compatible. So why has the government tried to prevent one company from dominating the software market? When there are only one or two firms in a market, consumers have fewer choices, and prices are likely to be higher.

In this chapter you will read about four different types of markets, or market structures. The four structures differ mainly in the number of firms that compete within them.

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