So here i go one of the subject that i never like since i was in form 4. And i have to learn the same thing when i was in matriculation. I keep wondering why do we have the learn something that you hate. But you know what guys, i found economics it's not that hard at all when you learn it english!!
okay back to the topic....
What I've learned in class today is 2 types of market structure, MONOPOLY and OLIGOPOLY. By definition, Monopoly is a market structure characterised by a single seller, unique products and impossible entry into the market or business because there are barriers to entry and exit. to simplify, monopoly is a market that only has one firm that provide total supply of the product. for example only Tenaga Nasional Berhad that supply electricity in Malaysia. This type of market structure is impossible to enter because high capital investment is needed to setup the business. Therefore only two or less firms can operate these business.
Next market structure is oligopoly, By definition, Oligopoly is a market structure characterised by few sellers, homogenous or a differentiated products, and difficult market entry. What i can tell about oligopoly is there are only few large firms in this industry but they can affect the market price. Example of oligopoly are tobacco and oil industries. Same like monopoly this market also has difficult entry due to high financial requirements to run the business..
that's all for today guys and don't forget to like my blog, subscribe, and stay updated!!
TATA... ^___^
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