Question

Which type of market structure is more favorable for an economy

according to You . State Reasons for your answer?​

Answer 1

Answer:

Perfectly competitive markets seem the best equipped to manage this, since, in the long run, the absence of firms with market power and the availability of perfect information mean that price equals marginal cost (the condition for allocative efficiency) and production is capped at the point where average total cost is at its lowest (the condition for productive efficiency).

Answer 2

Answer:

A variety of market structures will characterise an economy. Such market structures essentially refer to the degree of competition in a market. There are other determinants of market structures such as the nature of the goods and products, the number of sellers, number of consumers, the nature of the product or service, economies of scale etc. We will discuss the four basic types of market structures in any economy.

There are four type of market structure

1. Perfect Competition

2. Monopolistic Competition

3. Oligopoly

4. Monopoly