Chapter 9 explores the effects of competition and market structure on the American economy. Competition, one of the basic characteristics of a market economy, provides consumers with choices and leads to lower prices. Market structure is the amount of competition that a business faces.

Four Basic Market Structures
There are four basic market structures in the United States: perfect competition, monopolistic competition, oligopoly, and monopoly. For each market structure, the chapter defines its characteristics, its influence upon supply and demand, its effect upon prices, and its sample industries.

Federal Government's Role
Also described in Chapter 9 are the laws and agencies that the federal government has established to prevent monopolies. The chapter closes with information describing how some regulations had actually led to a decreased amount of competition in the economy, prompting deregulation.