Market Structures Of The Market - 1198 Words

INTRODUCTION Market Structures are classified in term of the presence or absence of competition. When competition is absent, the market is said to be concentrated. There is a spectrum, from perfect competition to pure monopoly. Market structure is the physical characteristics of the market within which firms interact. It involves the number of firms in the market and the barriers to entry. Perfect competition, with an infinite number of firms, and monopoly, with a single firm, are polar opposites. In standard usage of the term, competition may also imply certain virtues. Markets are the heart and soul of a capitalist economy, and varying degrees of competition lead to different market structures, with differing implications for the outcomes of the market place. This entry will discuss the following market structures that result from the successively declining degrees of competition in the market for a particular commodity. These elements are perfect competition, monopolistic competition, oligopoly, and monopoly. Based on the differing outcomes of different market structures, economists consider some market structures more desirable, from the point of view of the society, than others. Market Structure: Monopoly, Oligopoly, Monopolistic and Perfect Competition An oligopoly is a market form in which a market or industry is dominated by a small number of sellers. Oligopolies can result from various forms of collusion which reduce competition and leadShow MoreRelatedThe Market Structures Of A Market Structure962 Words   |  4 Pagesfour market structures that function in the worldwide market. Each of these market structures correlates with one another to create the demand and supply of the market. However, these market structures have some unique traits that no other theory can have alike. Therefore, a comparison and contrast is necessary to distinguish each of these theories from one another. These market structures of the economy are perfect competition, monopoly, monopolistic competition, and oligopoly. These market structuresRead MoreMarket Structure Of The Market Structures1779 Words   |  8 Pagesmayor to look at various market structures. I plan to provide excellent information and answer all the questions that will help the mayor understand the market structures of many of the businesses in his city. According to Arthur Levitt, the tension between centrality, on the one hand, and competition, on the other, is probably the oldest of all market structure issues (Levitt, n.d.). Market structures are being used daily to help foster companies. Describe each market structure discussed in the courseRead MoreThe Market Structures853 Words   |  4 PagesThe four defined market structures include perfect competition, monopoly, monopolist, and oligopoly. Although firms within these four different structures compete within the economic market together, each have their distinct characteristic. Perfect competition includes producers who all produce the same good. When looking at perfect competition you will see that both the buyers and sellers are price takers. The agricultural market is one of the few perfectly competitive markets. A monopoly consistRead MoreMarket Structures2710 Words   |  11 PagesKenya Institute of Management Diploma Course in Management Economics Work Based Assignment Done By: Daniel Mwathe Mugo Student No: NRB-44592 Table of Contents Question 2 Market Structures 3 Monopoly 3 Equilibrium Price and Output 3 Price Discrimination 5 Advantages of Monopoly 5 Disadvantages of Monopoly 6 Monopolistic Competition 6 Characteristics of Monopolistic Competition 6 Equilibrium level 6 Oligopoly 7 Features of Oligopoly 8 Competition and Collusion 8 Duopoly:Read MoreMarket Structure : A Competitive Market1359 Words   |  6 PagesMarket structure is about the number of competition that exists in a market among producers. The level of competition can be thought of as a continuous sequence with very competitive market at one end and the other end consist of market in which no competition exists. Market structure is important because of the implications it has for conduct and performance and the fact that it has an impact upon the strategic possibilities which faces the organization. Perfect competition This market structureRead MoreMarket Structures1479 Words   |  6 PagesBetween Market Structures ECO/365 April 13, 2015 Benjamin Zuckerman Differentiating Between Market Structures Coca-Cola Company is one of the world’s leading soft drinks manufacturers. Since its creation, the company has been growing constantly. Today Coca-Cola manufactures more than 500 brands of products sold in more than 200 countries all over the world. Coca-Cola’s main competitor is Pepsi. Therefore, the two companies make up a duopoly where only two companies dominate the market. BothRead MoreMarket Structures1503 Words   |  7 PagesMarket Structures The purpose of this paper is to provide of different types of market structures as well as pricing and non-pricing strategies used in the various market structures. First, the team explores the pure competition market structure through the analysis to Fiji Water Company. Second, the oligopoly market structure with LOreal Group Cosmetic and Beauty Company. Third, explain the monopolistic competition market structure with Campbells Soup Company. Last, the team explains how QuasarRead MoreMarket Structure1104 Words   |  5 PagesI. MARKET STRUCTURE We can classify firms by the roles they play in the target market: leader, challenger, follower, or nicher. Suppose a market is occupied by the firms shown in Figure 1.1. Forty percent of the market is in the hands of a market leader; another 30 percent is in the hands of a market challenger; another 20 percent is in the hands of a market follower, a firm that is willing to maintain its market share and not rock the boat. The remaining 10 percent is in the hands of market nichersRead MoreMarket Structure2924 Words   |  12 PagesForms of Industrial Organization, Market Structure, and Pricing Karl University MBA 501 Abstract The team will identify the four market structures, Pure Monopoly, Oligopoly, Monopolist Competition and Pure Competition in the forms of industrial organization. Pure Monopoly is one firm or company that controls the whole market whether there may not or may be substitutes. Oligopoly is a market dominated by a few large producers of a homogeneous or differentiated product. MonopolisticRead MoreAnalysis Of Different Market Structures Of A Market Structure2335 Words   |  10 PagesDifferent Market Structures Student s name Course name and number Instructor s name Date submitted Analysis of Different Market Structures 1. Introduction The small number of market structure consultancies across the globe shows that the market structure concept is itself considerably new. Clearly, various market structure components have been widely studied over the years: derivatives, exchange, trading, and clearing. Even then, there has been no holistic examination of the whole market structure