Market System of the Philippines

1. The types of competition in the market.

 Perfect Competition
 Monopoly market
 Monopolistic competition
 Oligopoly market

2. The information related to businesses include in the competition

Perfect Competition
- a market which a huge number of sellers produce and sell identical products.
- also means that all the sellers and buyers are aware of product’s price

Characteristics of Perfect Competition:

1. Large Number of Buyers and Sellers

2. Homogeneity of the Product
3. Free Entry and Exit of Firms
4. Perfect Knowledge of the Market
5. Perfect Mobility of the Factors of Production and Goods
6. Absence of Price Control
7. Perfect Competition among Buyers and Sellers
8. Absence of Transport Cost
9. One Price of the Commodity
10. Independent Relationship between Buyers and Sellers

Example: Public Market is a one of the examples of a perfect competition because inside the market
there is a huge number of sellers, in the Philippines Farmers Cubao is one of the best wet market in
Metro Manila.

Imperfect Competition
Monopoly market

- A situation where only "one" (Greek meaning of "mono") company offers its products or
services to the public, thereby creating a monopoly, a sole supplying firm where the consumer
has no option or choice but to buy their services or products.
- A monopoly is a specific type of economic market structure. A monopoly exists when a specific
person or enterprise is the only supplier of a particular good. As a result, monopolies are
characterized by a lack of competition within the market producing a good or service.

Characteristics of Monopoly Market:

 1. There is only one single firm that operates
2. Sells unique good or service. There is no available substitute.
3. Firms entering the industry are restricted because of entry barriers.
4. A single seller has control of entire supply of raw material

5. grant of government franchise to a single firm

Example:

1. Meralco (Manila Electric Company) sole distributor of electricity in the National Capital
Region
2. Maynilad is the water provider in west-zone of metro manila, and the east-zone is Manila
water.

Monopolistic competition

- Monopolistic is similar to perfect competition but firms are competing against each other by
producing products that are differentiated from one another

Characteristics of Monopolistic Competition:

1. Has ability to control the price of good or service

2. Free entry and exit of firms
3. Product differentiation

Example:

1. Jollibee is monopolistic because its products are either homogenous or heterogenous, and has a
huge number of competitors in the Philippines.
2. Puregold
3. Rebisco
4. Nestlé is a large and successful food and beverages company. The market structure of Nestle is
under monopolistic competition as it is product differentiation, it has many sellers and buyers,
easy market entry and exit, it is price maker and it spends money in the advertisement.

Oligopoly Market

Oligopoly is a market dominated by a small number of strategically interacting firms, there are only few
sellers offer similar products

Characteristics of Oligopoly Market:

1. Interdependence among firms

 2. Action of each firm affects other firm
3. Strong advertising
4. Price agreement among producers

Examples:

1. Oil Indutries (Shell, Petrol, Caltex)

3. Business condition in the Philippines

The Philippine business environment

The Philippines has one of East Asia and the Pacific region's most diverse economies. With increasing
urbanization, a growing middle-income class, and a huge and young population, the economic
dynamism of the Philippines is rooted in strong consumer demand backed by real income growth and
robust remittances.

Economic managers of the Philippine government missed their growth targets in 2018. They are
confident they can do better this year. The top economic experts in the country are focused on policy
changes and several external factors to stimulate growth and a better business climate.

After decades of political difficulties and isolation, the Philippines has taken a turn for the better and
undertaken a complete transformation of its politics and economy. Having capitalized on its population's
proficiency with English language and overseas workers, and led by its largest companies, the Philippines
has now become one of the world's most dynamic emerging market.

In support of the economic environment, taxes in the Philippines are relatively low compared to the rest
of the world, though not as low as other countries of Southeast Asia.