"Different Types Of Market Structure ..
Market structure can be said to be the classification or composition of the different types of market as described from their unique characteristics of how they choose to allocate prices of commodity in the market. The different types of market structure can be grouped majorly into two main categories the perfect and the imperfect market. Under the perfect market structure we have the perfect competitive market. Under the imperfect market we have the , oligopoly, monopolistic competition and other special categories based on the number of buyers. There are different examples of the different types of market structure based on the special characteristics’ possessed by each type of market structure.
Different Types of Market Structures Images - Frompo
The different types of market structure are; the monopolistic competition also referred to as the competitive market. The oligopoly market (called a duopoly when only two firms exist in the market), a monopsony (there exist only one buyer), the monopoly structure and the perfect competitive market. The types of market structures can be grouped into the perfectly competitive structure and the imperfectly competitive market structure. The imperfectly competitive market structures are the oligopoly, duopoly, monopoly and the monopolistic competition.
Market structures play a key role in the way a firm is able to do business. By understanding what sort of market structure that a firm is placed in, that firm will be able to see if the cost of business is worth continuing to fight for. The factors that separate the different types of market structures can be the difference in whether or not a start-up firm will be able to become successful or be driven from business by the major players that currently exist in that particular market structure. It is by understanding and playing to the market structure that certain companies such as Samsung Electronics have been able to become so successful. Different market structures place emphasis on different factors, however one truth is held. In the end, every firm is simply trying to push its products or services onto its consumer base.