Differentiating Between Market Structures Essay

1930 Words Dec 18th, 2011 8 Pages
Differentiating Between Market Structures
Alana Campbell, Dale Fortune,
Katrina Beyah, Leonard Cooper
University of Phoenix
ECO/212 Principles of Economics
Donnetta McAdoo
December 5, 2011

Differentiating Between Market Structures
To understand the economy of today one must understand the different market structures that make up the economy. There are four market structures that define the economic structure within the world’s economy; perfect competition, monopoly, monopolistic competition, and oligopoly. Team A will provide example of each market structure by completing a market structure table. The members of Team A will also compare and contrast the differences between public goods, private goods, common resources, and
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The supply curve for labor represents the behavior of the individual and the decision of how much labor to supply for a given wage, labor supply curve shifts if the individuals’ preferences for work over leisure change as most individuals tend to tradeoff between labor and leisure. Wal-Mart needs workers to sell, package, and distribute the products sold from its stores. Wal-Mart employees will not do this work free, compensation is required i.e wages. Wal-Mart must enter the labor market to buy labor so they can afford the workers while determining how much labor is demanded.
Labor equilibrium is established where the quantity demanded for labor equals the quantity supplied. This can only be done with a complete balance of supply and demand for labor. The supply and demand of labor is similar to the supply and demand of a product or service. The demand for labor is the behavior of individual firms’ i.e Wal-Mart to wages, and the supply for labor is the behavior of individuals to wages, both supply and demand interacting in the market to reach market equilibrium for labor. Anytime changes take place in the market that previously were consistent, such as the price for labor (wages), technology, and preferences, the supply and demand curves for labor shift, and therefore, the market equilibrium for labor is influenced and changes as well.
Wal-Mart’s Oligopoly

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