The Four Different Market Structures Essay - 2152 Words

This paper will outline the four different market structures. The four market structures are perfect competition, monopolistic competition, oligopoly and monopoly. This paper will outline the difference in each structure and also show different features about each one. After the features have been outlined it will then move onto looking at the pricing strategies needed in each market structure. The pricing strategies will then be linked together with their market structures in a case study to show how they are related and work as one together. To bring the paper to a close it will achieve the primary goal of showing that pricing strategies are relative to market structures. Market Structures and their Pricing Strategies Market structure is the interconnected characteristics of a market, such as the relative strength and number of buyers and sellers, level and forms of competition, extent of production difference, and ease of exit and entry into one of the markets (What is market structure? definition and meaning - BusinessDictionary.com, n.d.). Market structures can be broken down into four categories they are Perfect Competition, Monopolistic Competition, Oligopoly, and Monopoly. Perfect competition is when the market is controlled by a large number of competitors and because each firm claims only a very small market share, none has the power to control the price. (Stockdale, 2011) The price is determined by supply and demand of the product and there isShow MoreRelatedFour Different Market Structures1208 Words   |  5 Pagesï » ¿ Four Market Structures Shavon Harrison ECON222 Kunsoo Choi What are the four market structures and their characteristics? 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