THE PREVALENCE OF FOUR DIFFERENTIATED MARKET...
THE PREVALENCE OF FOURDIFFERENTIATED MARKET STRUCTURES
2IntroductionThere are four prevalent market structures the first market structure starts with, theperfect competition this market structure is made up of five prevalent factors. These five factorssell identical products; all firms are price takers. Each firm has a small market structure. Eachbuyer of the product knows the product and the price of it. Also, this market structure isseparated by freedom of entry and exit. Typically, only a few of these factors exist together. Theonly market structure that comes close to this market structure is the agriculture industry.Monopoly market structure is usually a firm that produces goods that have no close substitutes.In this market structure a single company owns most of the market share, there is no competition.And entry to this market is very high, the industry that comes close to this market structure istheir electric power industries. Oligopoly is a market structure that has only a small number offirms. Since this market structure is made up of only small firms, most of these firms have tocompete with other firms, in order to sell their products. The only industry that comes close tothis market structure is wireless services. Monopolistic competition has a large number ofcompeting factors. Also differentiated products, free entry, and exit from the industry. Thesefirms only exist when certain industries offer similar products are services. Most of the timethese firms do not affect its competitors. The candy industry comes closest to monopolisticcompetition. These market structures either defines or predicts consumer behaviors, or to comeup with competitive strategies. This essay will give detailed examples of these market structuresthroughout the essay.P