Different market structures

Need to know

What you need to know

• Market structure is determined by the number of firms, barriers to entry, and product type.
• The spectrum of competition ranges from perfect competition (most competitive) to pure monopoly (least competitive).
• A firm's behaviour and performance are heavily influenced by the structure of the market it operates in.
• Most real-world markets are imperfectly competitive (monopolistic competition or oligopoly).

Explanation

Different market structures

1. Market structure is determined by the number of firms, barriers to entry, and product type.
2. The spectrum of competition ranges from perfect competition (most competitive) to pure monopoly (least competitive).
3. A firm's behaviour and performance are heavily influenced by the structure of the market it operates in.
4. Most real-world markets are imperfectly competitive (monopolistic competition or oligopoly).