CONSTRUCTION & BUILT

ENVIRONMENT SECTOR
Covers a huge range of employment with hundreds of different job roles
Involved in designing, planning, and constructing the built environment as
well as making sure that it's functional, safe, fits in with building
Covers everything around us that is designed, planned, and built by people
for houses, shopping complexes, energy production plants,
factories, hospitals, schools, sports facilities, pavements, roads,
pipelines, bridges, airports and underground transport systems
Job areas of construction & built environment sector are Architecture,
Surveying and Planning, Building Services, Civil & Structural
Engineering and General Construction
 JOBS ROLES IN
CONSTRUCTION & BUILT
ENVIRONMENT SECTOR
 MARKET
STRUCTURES
It shows the precise relationship between output,
revenue and price, a firm has to know the structure
of the industry into which it is selling its product.
characteristics of the market that significantly affect
the behavior and interaction of buyers and sellers.
There are various market structures,
1.Pure (perfect) Competition
2.Monopoly
3.Monopolistic Competition
4.Oligopoly
 PURE (PERFECT)
COMPETITION
There is no real industry actually operates in such a market, it provides
an important reference point for economists
But, in the case of construction, there are also some interesting parallels
in reality
In the short run, the perfectly competitive firm can make
supernormal profits

Characteristics of Perfect Competition market structure

Many and small sellers, so that no one can affect the market

Homogeneous product

Free entry to and exit from the industry

Transparent and free information

 CURVES IN PERFECT
COMPETITION
Firms Demand
Market Equilibrium

In the long run, a perfectly competitive firm produces at the point where
Price = Marginal Revenue = Average Revenue
 MONOPOLY MARKET
STRUCTURE
A single seller
Unique product
The firm is the price
maker
Entry or exit is blocked
 CURVE IN
MONOPOLY
D1 Greater degree monopoly control

D2 lower degree monopoly control

 MONOPOLISTIC
COMPETITION
Firms operating under
monopolistic competition is
sufficiently large implying a great
degree of competition.
Multiple firms produce similar
products
In the limit, firms compete away
economic profits
 CURVE IN MONOPOLISTIC
COMPETITION

equilibrium for a monopolistically competitive firm short run equilibrium for a monopolistically competitive firm
long run
 APPROPRIATE MARKET
STRUCTURE FOR SRILANKAN
CONSTRUCTION AND BUILD
ENVIRONMENT
Monopolistic SECTOR
competition is the suitable market structure
for Srilankan construction & build environment sector due
to the following reasons,

creates more variety for the consumer

The price will be lower
The improvement in productive
efficiency