Thursday, March 10, 2011

Brazil's Market

Definitions and Examples

1. Perfect Competition: An idealized market structure in which there are large numbers of both buyers and sellers, all of them small, so that they act as price takers. Perfect competition also assumes homogeneous products, free entry and exit, and complete information.

Ex.)

2. Oligopoly: a market situation in which each of a few producers affects but does not control the market

Ex.) Brazil's Steel Sector is an oligopoly.

3. Monopoly: exclusive ownership through legal privilege, command of supply, or concerted action

Ex.) BM&FBOVESPA has a monopoly over securities, commodities, and future exchanges.

4. Monopolistic Competition: form of imperfect competition where many competing producers sell products that are differentiated from one another (that is, the products are substitutes, but, with differences such as branding, are not exactly alike).

Ex.)

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