Answer:
The five major market system types are Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition and. Monopsony
Explanation:
Perfect Competition
In economics, specifically general equilibrium theory, a perfect market, also known as an atomistic market, is defined by several idealizing conditions, collectively called perfect competition, or atomistic competition.
Agricultural markets are examples of nearly perfect competition as well. Imagine shopping at your local farmers' market: there are numerous farmers, selling the same fruits, vegetables and herbs. You can easily find out the prices for the goods, but they are usually all about the same.
Monopoly
Exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly and duopoly which consists of a few sellers dominating a market.
Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.
Oligopoly
Is a market form wherein a market or industry is dominated by a small group of large sellers. For example, it has been found that insulin and the electrical industry are highly oligopolist in the US.
Examples of oligopoly abound and include the auto industry, cable television, and commercial air travel. Oligopolistic firms are like cats in a bag.
Monopolistic Competition
Is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another and hence are not perfect substitutes.
A good example would be Burger King and McDonald's. Both are fast food chains that target a similar market and offer similar products and services. These two companies are actively competing with one another, as well as countless other restaurants, and seek to differentiate themselves through brand recognition, price, and by offering slightly different food and drink packages.
Monopsony
In economics, a monopsony is a market structure in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers.
The classic example of a monopsony is a company coal town, where the coal company acts the sole employer and therefore the sole purchaser of labor in the town.
