Market Structure Essay -- essays research papers

Market structure is defined as the particular environment of a star sign, the characteristics of which influence the firms pricing and output decisions. in that location are four theories of market structure. These theories arePure competitionmonopolistic competitionOligopolyMonopoly individually of these theories produce some type of consumer behavior if the firm raises the monetary value or if it reduces the cost. The supposition of pure competition is a theory that is built on four assumptions (1.)There are many sellers and many buyers, no(prenominal) of which is large in relation to total sales or purchases. (2.) Each firm produces and sells a homogeneous product. (3.) Buyers and sellers have all relevant data about prices, product quality, sources of supply, and so forth. (4.) Firms have easy entry and exit. A pure competitive firm is a price taker. A price taker is a seller that does not have the ability to control the price of the product it sells it takes the pri...