Diferentiating Between Market Structures

Differentiating Between Market Structures

Differentiating Between Market Structures
Most goods in the economy are allocated in markets, when a good does not have a price attached to it, private markets cannot ensure the good is produced and consumed in the proper amounts.
Labor market equilibrium is affected by supply and demand because of the changes in the supply and demand curves. An existing relationship between the wage rate and the value of the marginal product shows how both factors move in the same direction. The wage rate is important to labor supply and demand because is a critical point that decides how the curves shift.
The health care industry is full with competition to provide the best health care plans for those in needs. Consumers have a vast variety of choices to choose from and meet the consumer’s health care needs. AmeriChoice of New Jersey Inc. is one of many of those providers consumers can choose from. According to AmeriChoice a United Health Group (2010) “AmeriChoice is the premier provider in the United States of high quality, personalized public sector health care programs, serving more than three million people in Medicaid, Medicare and Children's Health Insurance Programs in 25 states and the District of Columbia.” (About Us, para. 2).
Public and Private Goods, Common resources and Natural Monopolies
In Chapter 11 when thinking about the various goods in the economy, it is useful to group them according to two characteristics:
“Is the good excludable? Can people be prevented from using the good?   Is the good rival in consumption? Does one person’s use of the good reduce another person’s ability to use it?”   (Mankiw, 2010)
Public goods are goods in which neither excludable nor rival in consumption. If one person consumes public goods, the amount available remains the same. Second, once public goods are available, no one can be stopped   from consuming them. Private goods are goods in which both excludable and...