Unit 2.11 · Market Failure: Market Power

Market Structures Overview

AO2HL

Syllabus Requirement

Covers perfect competition, monopoly, oligopoly, and monopolistic competition, highlighting entry barriers, number of firms, and product types.

Assessment Objectives
AO2Application and Analysis

Summary

Market structure refers to the classification of firms within an industry based on their characteristics and behavior. Understanding market structures is important as it helps consumers make informed decisions and allows governments to create effective economic policies.