Market Structure
Market structure refers to the characteristics and organization of a market that influence how businesses compete and set prices. It includes various types, such as perfect competition (many sellers, identical products), monopolistic competition (many sellers, differentiated products), oligopoly (few sellers, can influence prices), and monopoly (one seller dominates). Understanding market structure helps to analyze how industries function, the level of competition, and the potential for profits. Each structure affects consumer choice and pricing, shaping the overall economy.
Additional Insights
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Market structure refers to the organization and characteristics of a market that influence how businesses compete and how prices are set. Key types include perfect competition, where many firms sell identical products; monopolistic competition, with many firms offering similar products; oligopoly, dominated by a few large companies; and monopoly, where one company controls the market. Each structure affects consumer choice, pricing, and the overall efficiency of the market. Understanding market structure helps explain how different industries operate and the dynamics that influence economic behavior.