Scribd Logo
Upload

Welcome to Scribd!

  • 57 views

    Eco. Assignment1

    Uploaded by

    shiksha
    This document defines market structure and describes its key characteristics. It notes that market structure considers the number of firms, market concentration, costs, vertical integration, product differentiation, and buyer/customer structure. It then describes the main types of market structures: monopolistic competition with differentiated products; oligopoly with a small number of dominant firms; monopoly with a single provider; and perfect competition with many identical producers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Eco. Assignment1

    Uploaded by

    shiksha
    57 views4 pages
    This document defines market structure and describes its key characteristics. It notes that market structure considers the number of firms, market concentration, costs, vertical integration, product differentiation, and buyer/customer structure. It then describes the main types of market structures: monopolistic competition with differentiated products; oligopoly with a small number of dominant firms; monopoly with a single provider; and perfect competition with many identical producers.

    Original Title

    Eco. assignment1.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document defines market structure and describes its key characteristics. It notes that market structure considers the number of firms, market concentration, costs, vertical integration, product differentiation, and buyer/customer structure. It then describes the main types of market structures: monopolistic competition with differentiated products; oligopoly with a small number of dominant firms; monopoly with a single provider; and perfect competition with many identical producers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views4 pages

    Eco. Assignment1

    Uploaded by

    shiksha
    This document defines market structure and describes its key characteristics. It notes that market structure considers the number of firms, market concentration, costs, vertical integration, product differentiation, and buyer/customer structure. It then describes the main types of market structures: monopolistic competition with differentiated products; oligopoly with a small number of dominant firms; monopoly with a single provider; and perfect competition with many identical producers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 4

    MARKET SRUCTURE

    [Document subtitle]

    SHIKSHA SINGH
    17BLA1051
    DEFINITION:

    Market structure is best defined as the organisational and other


    characteristics of a market. We focus on those characteristics
    which affect the nature of competition and pricing.

    The most important features of market structure are:

    1. The number of firms 


    2. The market share of the largest firms (measured by
    the concentration ratio)
    3. The nature of costs (including the potential for firms to
    exploit economies of scale)
    4. The degree to which the industry is vertically
    integrated - vertical integration explains the process by
    which different stages in production and distribution of a
    product are under the ownership and control of a single
    enterprise. A good example of vertical integration is the oil
    industry, where the major oil companies own the rights to
    extract from oilfields, they run a fleet of tankers, operate
    refineries and have control of sales at their own filling
    stations.
    5. The extent of product differentiation (which affects
    cross-price elasticity of demand)
    6. The structure of buyers in the industry (including the
    possibility of monopsony power)
    7. The turnover of customers (sometimes known as
    "market churn") – i.e. how many customers are prepared
    to switch their supplier over a given time period when
    market conditions change. The rate of customer churn is
    affected by the degree of consumer or brand loyalty and
    the influence of persuasive advertising and marketing
    Types of market:
    Monopolistic is a type of imperfect competition such
    that many producers sell products or services that are
    differentiated from one another (e.g. by branding or
    quality) and hence are not perfect substitutes. In
    monopolistic competition, a firm takes the prices
    charged by its rivals as given and ignores the impact of
    its own prices on the prices of other. This market
    structure exists when there are multiple sellers who are
    attempting to seem different than each other.
    2. Oligopoly, in which a market is run by a small number
    of firms that together control the majority of the market
    share.
     Duopoly a special case of an oligopoly with two
    firms.
     Monopsony, when there is only a single buyer in a
    market.
     Oligopsony, a market where many sellers can be
    present but meet only a few buyers.
    3. Monopoly, where there is only one provider of a
    product or service.

     Natural monopoly, a monopoly in which economies


    of scale cause efficiency to increase continuously with
    the size of the firm. A firm is a natural monopoly if it
    is able to serve the entire market demand at a lower
    cost than any combination of two or more smaller,
    more specialized firms.
    4. Perfect competition, a theoretical market structure
    that features low barriers to entry, identical products
    with no differentiation, an unlimited number of
    producers and consumers, and a perfectly
    elastic demand curve.
    ----------*----------

    You might also like