Compare and contrast Essay Example | Topics and Well Written Essays - 500 words - 26

Compare and contrast - Essay Example This fact is illustrated in the medical field in CT scan services. The CT scan machines were offering the same product and in the long run, they became unprofitable venture. This is due to the prices declining as many identical products are continually being introduced in the market. Farmers’ market is a good example of competitive market structure (Hubbard, p450). Competitive monopoly on the other hand has dominating firm(s) that control prices unlike in perfect competitive markets. Both market structures have many buyers and sellers and the entry to these market systems are considerably similar. The entry to the both market structures is significantly easy. The only difference is the product being sold. In competitive market, the products are similar in all aspects while in competitive monopoly, the products are differentiated. Starbucks and other coffee houses compete in a competitive monopolistic market structures. They offer the same products but adequately differentiated (Hubbard, p465). Competitive monopolistic firms also offers prices that are greater than their marginal costs. In the short run, competitive monopolistic firms should have marginal revenue below its demand curve to realize profits. In the long run, competitive monopolistic firms make profit if their total revenue is greater than their total costs (Graph B1 and B2). Oligopoly differs from competitive monopoly and competitive market structure in the ease of entry. Entry into oligopoly market structure is considerably hard because of the barriers of entry present in the market. Companies like Microsoft and Google fall in this category. New firm venturing into this market experience stiff competition among other barriers and its survival is barely minimal. This because, Microsoft and other firms in this market structure have economies of scale and there are also several governmental imposed barriers to such