Types Of Market Structures And The Success Of A Market

Market structures are very important and understanding the structures can let too smooth operation of an industry. There are many factors that contribute to the success of a market like, buyers, sellers, pricing, and the productivity. Monopoly, oligopoly, perfect competition, and monopolistic competition are the different types of market structures. Businesses are affected by with structure they operate within and success can vary based on their choice. Structures gives important information that a firm needs to operate because it can be a foundation, or reference to see exactly what areas need improvement. A firm must be wise in their choice of all the different markets before they make their entry. Education of this would lead to best overall choice and possibly the success of the business. Firms sometimes make poor decision because they are not always sure of with market fits their structure and this could lead to failure. Perfect competition is the market structure where there are sellers, and buyers that produce homogeneous products, and free entry and exit out of the industry (Amarcher, pate, 2013). The particular market has the most number of firms making similar products therefore the competition is basically on and level playing field. To be consider a perfect competition the structure must have a large number of firms selling or producing the similar products. The only differences between the firms should be the overall quality of the products that areShow MoreRelatedMcDonalds Market Structure656 Words   |  3 PagesMarket Structure: The organization and characteristics of a specific market where a company operates is referred to as market structure. While markets can basically be classified by their degree of competitiveness and pricing, there are four types of markets i.e. perfect competition, monopolistic competition, monopoly, and oligopoly. 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