What Is a Market Structure Analysis?

The market structure is the internal connection between the elements that make up a certain system and its characteristics. In the theory of industrial organization, the market structure of an industry refers to the characteristics and forms of market relations (trading relations, competition relations, and cooperative relations) of an enterprise. The market relationship between the buyer and seller as the main body of the market includes four situations: the relationship between the seller (the enterprise); the relationship between the buyer (the enterprise or the consumer); the relationship between the buyer and the seller; Some buyers and sellers have relationships with buyers and sellers who are entering or may enter the market. The comprehensive reflection of the above relationship in the real market is the market competition and monopoly relationship. Market structure is a concept that reflects market competition and monopoly relations. The market structure is the basic factor that determines the market price formation method, and thus determines the competitive nature of industrial organizations. ^[1]

market structure

Market structure-Yes

1,

The division of what type of market structure an industry belongs to is mainly based on the following three aspects:

First, the number of producers or companies within the industry. If the industry is a single company, it can be divided into

Four general

Perfect market structure

There are many buyers and sellers in the market

Homogeneous products from each manufacturer

Free flow of factors of production

Complete market information

Complete market structure

Only one manufacturer produces and sells products in the market

Its products cannot be replaced by other products

Inaccessible by other manufacturers

Market structure monopoly competition

There are many manufacturers in the industry

Different manufacturers produce different similar products

Freedom for manufacturers to enter and exit the market

Market structure oligopoly

Few companies in the industry

There are high barriers to entry into the industry

Interdependence

Close interest