write a features all market structure and distinguish between all market structure?
Answers
Answer:
Market structure refers to structural variables such as number of firms, barriers to entry and exit, product differentiation, etc. which determine the level of competition in a market.
Basic market structures are monopoly, oligopoly, monopolistic competition and perfect competition
1. Perfect Competition
Perfect competition describes a market structure, where a large number of small firms compete
against each other. In this scenario, a single firm does not have any significant market power. As a result, the industry as a whole produces the socially optimal level of output, because none of the firms can influence market prices.
2. Monopolistic Competition
Monopolistic competition also refers to a market structure, where a large number of small firms compete against each other. However, unlike in perfect competition, the firms in monopolistic competition sell similar, but slightly differentiated products. That gives them a certain degree of market power, which allows them to charge higher prices within a certain range.
3. Oligopoly
An oligopoly describes a market structure that is dominated by only a small number of firms. That results in a state of limited competition. The firms can either compete against each other or collaborate
4. Monopoly
A monopoly refers to a market structure where a single firm controls the entire market. In this scenario, the firm has the highest level of market power, as consumers do not have any alternatives. As a result, monopolies often reduce output to increase prices and earn more profit.
hope it helps!!