The IB requires examples of markets in a local market scale, national scale and international scale. The corresponding examples could be a corner kiosk, a national newspaper and a car manufacturer.
There are 4 basic market forms that we must know in brief for all students. Other than this Higher Level students would learn about this in more depth in the theory of the firm.
Perfect Competition is the "ideal" form of competition, where there are many competitors producing same products and selling it at the price that the market sets it at. No barriers to entry exist.
Monopoly is where there is little or no competition, the producer has the power to 'make' price and profits high. Barriers to entry exist.
Oligopoly is where a few firms own or control the production or provision of goods and services in an economy. They act together to maintain prices at a high level and rely on non competition. They use advertisment and promotions to build up a sense of brand loyalty. Barriers to entry exist.
Monopolistic Competition is where each firm has a little market power and a small ability to set prices, they sell slightly differentiated products. No barriers to entry exist.
Following that glitchy table I have decided to insert a photo in place of another table.
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