‧numbers of sellers and buyers.

‧nature of products, e.g., whether they are homogeneous or differentiated

‧ease of entry and exit

‧availability of information .

The Features

Market structure

Perfect competition

Imperfectcompetition

Monopolisticcompetition

Oligopoly

Monopoly

Classification

Choose three Winnie Poohs to be the actors:

Student A……

Student B……

Aside………...

One day, student A met student B on the street…

Hi! B.Why do you look so

upset?

Am…it’s because I feelgreat pressure from my working environment.

So, SStudent A suggested student B to go to Landau Island.

So that they could visit the temple.

Let us go to Landau Island to have a happy hour!So you can relax~~

Oh! It’s a good idea!Let’s go!

As a result, student A and student B went to Landau Island with their friends.

Ha ha…

They went from Tai Po by KCR, MTR to Tsai Sha Chu. And they went to LandauIsland by ferry.

And they decided to go to temple by bus. But when they arrived at the bus stop, the bus went away.

OH! The bus…

Apart from the bus, we can go by taxi and on foot. But it is too expensive to take a taxi.But we need to take 3 hours on foot.

Why there is no other bus companies established to provide the bus services in Landau Island?

It is because the government only allow the NLB to provide the bus services from Mui Wo to temple. The other bus companies are not allowed.

This is called government franchise

It is monopoly in the market. The NLB must earn a lot of money.

I don’t know. It’s difficult to know the NLB’s profits. Apart from that, they still need to facethe other competitors. E.g., taxi…

Oh! I understand now.You are so clever.

After a hours, they can get on the bus.

Yeah!!

end

The Characteristics

(1) There is only one seller in the whole industry.

(2)There is no close substitute for its product.

(3)Entry to the industry is extremely difficult or even impossible

(4)Market information is highly restricted.