Types of market structure?

Market structure refers to the characteristics of a market that determine the behavior of the firms operating within it. There are several types of market structures, including perfect competition, monopolistic competition, oligopoly, and monopoly. Perfect competition is characterized by many small firms competing with each other, where no individual firm has the ability to influence the market price. Monopolistic competition is similar to perfect competition but allows for firms to differentiate their products. Oligopoly is when a few firms dominate the market, creating a less competitive environment. Finally, monopoly occurs when one company dominates the market, with no viable alternatives for consumers. Understanding the type of market structure in which a company operates can have significant implications for strategic decision-making, as well as government regulation and antitrust policy.

This mind map was published on 26 May 2023 and has been viewed 76 times.