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This paper presents and defines various terms that are related to market structures, with an emphasis on private and public goods. These are defined and specific examples of each are given. Additionally, the paper also considers the concepts of common resources and natural monopolies, giving salient examples of each. Finally, the paper discusses several issues related to the labor market, such as supply of workers and equilibrium.
From the Paper:"Between these two main categories, depending on the level of exclusion and rivalry, there are two additional types of goods: common resources and natural monopolies. Common resources are rival, but not excludable. Usually, these are the types of goods to which all have access in principle, but their exploitation is limited on the capacity of the individual or groups of individuals to actually commit to their exploitation. If one refers to a coal mine, for example, the rivalry comes from the ability to produce coal on that mine, which goes anywhere from obtaining the governmental approval to having the right financial backing to do this.
"With natural monopolies, these are excludable, but not rival. Examples in this area can range from fire protection to cable TV, anywhere along the lines of the general characteristics of this category of goods.
In terms of the labor market and labor market equilibrium, the functionalities are similar to all of the other market, with supply and demand on the market working towards establishing the right price and quantity for the respective resource (in this case, the labor force). An exceeding supply of workers on the labor market amounts to a lower price for that respective resource, as well as to potential unemployment."
Sample of Sources Used:
- Mas-Colell, Andreu; Whinston, Michael; Green Jerry. 1995. Microeconomic Theory. Oxford University Press.
- Gravelle, Hugh. 2004. Microeconomics. Pearson Education.
Cite this Analytical Essay:
Market Structure (2011, November 10) Retrieved January 28, 2022, from https://www.academon.com/analytical-essay/market-structure-148865/
"Market Structure" 10 November 2011. Web. 28 January. 2022. <https://www.academon.com/analytical-essay/market-structure-148865/>