Market Structures Influence How Price

Market refers to a place where buyers and sellers meet and conduct successful transactions of a good or a service. There are certain conditions and characteristics of each market which distinguish each market from one another. These conditions make the structure for a market in which all the buyers and sellers operate. Such conditions include:-Number of BuyersNumber of sellersBuyer Entry BarriersSeller Entry BarriersSize of the firmProduct Differentiation/ Homogeneous ProductMarket ShareCompetitionIn real world, both consumers and producers need to operate under four categories of market structure: perfect competition, monopolistic competition, oligopoly, and monopoly. The most important feature of each market structure is related to the differences in the demand curves of the consumers of a particular product. Some of the market structure shows steeper demand curve showing lower elasticity of demand , whereas some shows higher elasticity of demand having flatter demand curve. CITATION Dav90 \l 1033 (Ross, 1990)Now next is studying about the real world examples of each of the market structure mentioned above so that we can learn the concept more easily. CITATION Pau \l 1033 (Geroski)Monopoly – These are the state owned companies or