Differentiating between Market Structures Paper
Melissa Blanco, Mary L. Lockett, Saundra Luke
University of Phoenix
ECO/212 Principles of Economics
February 1, 2010
Instructor Michael Shackelford
Four trade buildings makes right aways frugal foodstuff, knowing the difference between the quadruple give notice help a business realize which foodstuff would be more suitable for their firm. The term market structure refers to the set of industry characteristics that affect the extent or rival in the market and ultimately affects market performance connect to pricing and output. (Humboldt State University, 2000, para. 2) The economic market consists of warlike market, monopoly, oligopoly, and noncompetitive competition. In this report we will be discussing the four economic structures, different types of businesses that are in these different types of markets.
The first market structure we are going to discuss is competitive market. war-ridden market has many characteristics, for casing, there are many buyers and sellers in the market, the goods offered by the various sellers are largely the aforementioned(prenominal) and firms can freely enter or exit the market. (Humboldt State University, 2000, para.
 5) whatever actions taken by a single buyer or user has an insignificant effect on the market charge. An example of a competitive market occurs when individuals are selling the same items in the same place. When special holidays are arriving, for example Valentines, there are individuals who sell roses in the same street. They are ever trying to give specials to sell more.
The other type of market structure is monopoly, which exists when a single firm is the sole manufacturing business of a product for which there are no close down substitutes. Investopedia (2010) Usually monopolistic companies are not desirable for consumers. Whereas the competitive market was a price taker, the monopolistic is a price maker. It has control over the...If you want to get a secure essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment