AP, IB, and College Microeconomic and Macroeconomic Principles 

4 Product Market Structures Explained

4 Product Market Structures

6/21/2017 Jacob Reed
Since Firm Behavior and Market Structures comprises 25-35% of the Advanced Placement (AP) Microeconomics Exam, I expect this will definitely be an important topic to review for any student preparing for an AP, IB or college level Microeconomics Principles exam. Below you will find a breakdown of all 4 product market structures. When you are done reading, head to the 22 question Product Market Structures Flash review game to help you prepare. 

Market structures spectrum
All Profit Maximizing Firms:
  • Produce the quantity where MR=MC
  • Price at Demand
  • Temporarily shut down when price falls below Average Variable Cost (AVC) at the profit maximizing quantity.
  • Profit/loss is determined by the gap between the ATC and the firm’s demand curve at the profit maximizing quantity (MR=MC).
Follow the links below to review each of the 4 market structures in more detail:

Other recommended resourcesmjmfoodie (4 market Structures), No Bull Economics (Perfect Competition), ACDC Leadership (Monopolistic Competition), Jason Welker (Oligopoly), ACDC Leadership (Monopoly)