Market Structures

March 29, 2011

Differentiating Between Market Structures
A market structure is a theoretical model of the way an industry operates. All industries may not all fit into a particular market structure, but theoretical models help to analyze the behaviors of firms in the marketplace. In this paper, the main points of discussion will be focusing on comparing and contrasting between public goods, private goods, common resources, and natural monopolies, how labor market equilibrium affects the supply and demand of labor, the characteristics of Apple as an oligopoly, the effectiveness of Apple as an oligopoly, and the factors that affect the labor supply and demand for Apple.
            Comparing and Contrasting Public Goods, Private Goods,
                      Common Resources, and Natural Monopolies.
Economists define public goods as non-rival and non-excludable. The benefits of public goods are spread throughout a community even if consumers decide not to purchase a good or service. An example of public goods would be national defense, the Department of Education, research companies, and the Department of Interior. Consumption of public goods by one individual does not reduce its availability to others. Private goods are just the opposite they are rival and excludable. Generally, private goods are offered by private firms. When consumers have the money, they purchase private goods. Examples would consist of food and clothing. Public goods are made available because individuals can gain use from them without paying for the good or service.
Common resources provide users with tangible benefits. These kinds of resources come in natural forms like forest, lakes, rivers, or man-made irrigation cannels and reservoirs. Common resources can be owned by national, regional, and local governments as public goods or by private individuals and firms as private goods. Common resources, however, can help a company turn into a natural monopoly.
Natural monopolies exist as...