Market Structure Analysis

Market Structure Analysis involves examining how different markets operate based on factors like the number of companies, product differentiation, and ease of entry. It categorizes markets into types, such as perfect competition, monopolistic competition, oligopoly, and monopoly. Understanding these structures helps identify how businesses compete, set prices, and influence consumer choices. For example, in a monopoly, a single company dominates the market, while in perfect competition, many businesses sell identical products. Analyzing market structures can guide businesses in strategy and inform policymakers about potential regulations.