What is the market structure?

The market structure refers to the nature of the market and examines its properties, including customers, costs and competition. In general, markets are divided into four types of structure: oligopoly, monopoly, monospons and perfect competition. Monopolies, oligopolies and monospons are types of imperfect competition that exist, unlike the perfect competitive market. Market structures are used by traders and economists to predict the economic future of business or market. The perfect competitive environment is theorized as an environment that creates the lowest price for consumers. In the perfect competitive system, every trader can get free of charge. There are a number of buyers and sellers offering essentially the same product involved in price wars and trying to offer the lowest price to the consumer.

Oligopoly is a market structure involving a relatively small number of market sales that can control the price of their goods. If Oligopol has a result of an agreement or secret stores, among the companies involvedThe result may be a price control. An example of a well -known oligopol would be a gasoline industry in which only a few companies dominate the market and have the opportunity to go through price control. Oligopol is usually formed either because the cost of achieving business is high or because wealthy competitors with a large budget for product promotion are dominated by the market.

Monopoly is a market structure in which one company has the whole market, or almost everything. Although this is often considered as a condition of forced market structure, the monopoly may not always be caused by disgusting competing practices; Sometimes it can happen in itself. When a monopoly occurs, because everyone else supplies a product or service service is called a natural monopoly. Monospones is a market condition in which there is one buyer with many options offering the same product or service. In these cases the buyer tends to have more power, forThis is essential for dealers.

changes in technology and business can transform the market structure in the field. The oligarchic market in which the record industry is located has noticed a transformation with the advent of home computers carrying simple recording technology combined with the development of the Internet. Previously, high cost of recording equipment and development and promotion provided a record industrial control over the market with the music market. With a new, cheaper technology, an internet fans can build a fan base with some other money and raise money for your work without the help of a recording company or contract.

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