Running head: RESEARCH PROJECT ONE
Research Project One
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American Military University
RESEARCH PROJECT ONE
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Abstract
There are many types of market scenarios and each has different characteristics. As a participant
of a buyer or supplier, it is important to know what characteristics effect the price that will be
paid by you or to you. This information can help you to become more successful in either role.
Each market has certain conditions that must exist for the market scenario to be the result. In this
paper, the following are introduced and explained: pure competition, monopolistic, oligopoly,
and monopoly.
Keywords: perfect competition, monopolistic competition, oligopoly, monopoly
RESEARCH PROJECT ONE
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1. Perfect Competition
1.1 Perfect competition is a theoretical or rarely existential concept that is used to
compare real market scenarios against. In order for competition to be perfect or pure, each of
these different benchmarks must be met: each participating firm offers identical products, the
market price is not controlled by any of the participating firms, the participating firms each have
small market shares, all information about the product and the price of the product are known by
all participating buyers, freedom of entry and exit into the market exists (Perfect Competition,
2014). Perfect competition presents a situation where the price of a product is truly represented
by the supply and demand for the product. The interesting thing about perfect competition
though, is that it is unobtainable in the real world (McDermott, 2015). It can only be used to
