We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Market structures - Essay Example

Comments (0)
Summary
Market Structures Introduction In order to understand the different types of market structures a thorough analysis is required for understanding of the market forces. This report makes an attempt to answer the various types of questions that may arise in the context of markets in an economy Answer 1 In the economic analysis there are various kinds of market structures that may operate in the economy depending on the number of sellers and the degree of market power that each seller has in the market…
Download full paper
GRAB THE BEST PAPER
Market structures
Read TextPreview

Extract of sample
Market structures

Download file to see previous pages... Since the market power is equitably distributed among the sellers in this market who sell homogenous products the markets generally have a downward sloping demand curve. On the other hand the individual firm will face a horizontal demand curve as the price would be set by the market and it will be given to the individual seller. While the market equilibrium of a perfect competition would be at the point of intersection of the demand the supply curve, the individual firm will produce at the point where Marginal Cost curve cuts the Average cost curve from below. In this figure the firm will earn only normal profits as the firm has to supply the products in the market at the price which is equal to the cost of production of the company. Source: Arnold, 2013 Characteristics There is no barrier to entry or exit in this type of market. Any firm may easily come into the competitive scenario and may leave the market without having a major effect on the demand and supply in the market. The firms sell homogenous products which mean that the buyers would be indifferent between the sellers who offer the products in the market. ...
Each of the firms has a single portion of the market share. The production will take place at the point where ATC curve is tangent to the market demand curve instead of the point where the MC curve cuts the ATC curve from below. Source: Arnold, 2013 Characteristics: The products sold in a monopolistic competition are a differentiated product which means they are not perfect substitutes of one another. The produces have some control over the market price and hence there is excess capacity in the process of production. The quantity produced would be less compared to that of perfectly competitive markets. Monopoly In a monopoly market there is a single seller and a large number of buyers. Since the entire market power is in the hands of the single seller the price is set above the price that is present in the perfectly competitive markets. The monopolist will produce at the point where MR is equal to MC. This is depicted in the diagram below. Source: Varian, 2010 Characteristics In case of a monopolist there is presence of excess capacity and the quantity produced is less than that of the competitive markets. There is high barrier to enter the monopolistic market is very high. Oligopoly An oligopolistic market is that which has a few sellers and a large number of buyers. The market power is distributed among the sellers of the markets. There may be different types of oligopolistic competition. While some firms may be fighting price competition the others would fight the quantity competition. Characteristics The firms in the oligopolistic markets are the price setters. The barriers to entry in this type of market are high. Answer 2 The market for fresh vegetables in the city is an example of perfectly competitive market. In this market there are a large number of ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Maximizing profits in market structures
The competitive market is therefore perfectly elastic (Mankiw, 2009). The product is always homogeneous in a competitive market, and producers have no control over price. There is perfect knowledge by all buyers and seller, and perfect mobility in all factors in the competitive market (Jain & Khanna, 2009).
4 Pages(1000 words)Essay
Differentiating Between Market Structures
The paper will analyze the market forces of the company and the associated competitive strategies. The market structure where the company operates will also be examined. Market Analysis The company has been successful in catering the customers. The businesses specialize in hiring chefs and train them to serve the purpose.
4 Pages(1000 words)Essay
Market Structures in Sony Corporation
A Sony Corporation is a leading manufacturer of electric electronic gadgets all over the world such as music, online business, motion pictures, television, and computer entertainment. The organization has gained recognition throughout the world following its high awareness of products to the customers.
4 Pages(1000 words)Essay
Differentiaitng between market structures
These market structures range from the perfect competition to monopoly, in between these two extremes are the monopolistic competition and oligopoly. Their differences may be summarized through the number of firms present in the industry, barriers to entry, their market power and the type of products they are selling (Schiller, 2006).
6 Pages(1500 words)Essay
Differiating Between Market Structures
al, 2011). Therefore, market structure affects the market outcomes by influencing opportunities, motivations and decisions of vast industries participating in the market. The aim of market structure analysis is to isolate the effects in an attempt to predict and explain the market outcome.
4 Pages(1000 words)Essay
US primary market structures
As such market structure refers to the state of market or an industry with respect to competition (Market Structure 1).Market structure is important in determining the degree of competition in an industry thereby enabling us to know how this rivalry affects a customer.
3 Pages(750 words)Essay
Market Structures
Because it has no competitor, the whole market depends on the monopolist’s production, and this dependence gives the monopolist power to raise the prices even at the same quality of output, or
3 Pages(750 words)Essay
Market Structures
In spite of being close substitutes, the products can be differentiated and advertising and branding plays a major role in this type of market. A large number of sellers exist in the market. The market structure is
3 Pages(750 words)Essay
Strategic Management Meredith Belbin
Throughout his research, he was guided by the fundamental principle of building on success and understanding causes of failure. His module focused on offering individuals opportunities, proportionate
1 Pages(250 words)Research Paper
Market Structures
In economics, market structure is the feature of a particular market in the economy. The features of a market can be organizational, competitive, or any other characteristics that define the commodity market. The yardstick that economists use in defining market structures is the pricing models and the nature of competition in a particular market.
2 Pages(500 words)Essay
Let us find you another Essay on topic Market structures for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us