Topic > Understanding the Structure of the Corn Market in Tap

First, a perfectly competitive market offers low prices for consumers in the market. This exists as a benefit to consumers who purchase the product. In the example, there remains a benefit for people who buy corn cheaply on Tap. However, when low prices exist on the market, the burden falls on the producers. This happens because producers identify themselves as price takers and the price remains low due to competition. Low prices translate into lower profits. On Tap Island, for example, low prices in a competitive market hurt corn producers. This means that farmers prefer the monopolistic version of the market. The form of monopoly means that farmers are paid above the perfectly competitive market price. In contrast, in a form of monopoly prices remain higher for consumers. The final advantage of the monopoly form is uniform packaging and quality. Since only one company produces the specific product, they use the same quality and packaging throughout the process. This can also be seen as cheating on the perfectly competitive side. This side uses many different forms of packaging and quality due to the different quantities of manufacturing companies. Overall, you get a lot of pros and cons when implementing various types of marketplaces