Bus 640 Production Cost Analysis And Estimation

Student NameCourse NameUniversity Name17th-Sep-2013SituationI have been hired as a consultant to the local mayor so that I can brief him/her about the situation of market structure in the region. It is very important to have knowledge of the same so that right kind of policies can be made for the region. There are different market structure and we will explore each of them in some sort of detail.Market StructuresPerfect Competition: In such a market there are many players and hence there is huge competition. Due to too many sellers, customers are at advantage and hence the price point is achieved in the best possible manner. For all policy maker these kind of markets are most desired and the situation is ideal for the makers (Chevalier, 2006).Monopolistic Competition: The players in the market are less and it is heading towards monopoly, the situation in such scenario is alarming and policy makers need to make sure that such a situation is avoided.Oligopoly: In such a scenario there are small number of sellers and small number of players are controlling the market and hence the