Nobody downloaded yet

[ECONOMIC] Different Market Structures & their Effects on Cusumers and Producers [WRITTER REQUIRE to have: ECONOMICS 4th Edition Book by: Stephen Ison & Stuart Wall] - Essay Example

Comments (0) Cite this document
These markets consist of numerous producers. The producers have their goods or products differentiated (Stephen & Stuart, 2007). Goods sold in this market are assumed to have no difference in their…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.7% of users find it useful
[ECONOMIC] Different Market Structures & their Effects on Cusumers and Producers [WRITTER REQUIRE to have: ECONOMICS 4th Edition Book by: Stephen Ison & Stuart Wall]
Read TextPreview

Extract of sample "[ECONOMIC] Different Market Structures & their Effects on Cusumers and Producers [WRITTER REQUIRE to have: ECONOMICS 4th Edition Book by: Stephen Ison & Stuart Wall]"

Download file to see previous pages s
Firms or producers in monopolistic competition market structure have the freedom to enter and exit the market. In this market structure, there are many firms willing to enter the market either to bring unique product to the market, or to enjoy positive profit. If a firm is not able to pay for its costs can exit the market without undergoing liquidation costs (Stephen & Stuart, 2007).
However, the monopolistically competitive markets have got some market power. A monopolistic seller can increase the product price and fail to loss all his or her buyers (Stephen & Stuart, 2007). A reduction in price by a monopolistic seller may not lead to a serious price war with the other competitors. In this nature of market, there is perfect information of the market. Buyers are much aware of the goods sold in the market (Roger, 2001).
Regarding the decision making process in monopolistic competition market structure, producers are independent in setting the exchange terms for their products. The firms do not consider the ultimate effects of their decision to the rest of competitors (Roger, 2001). The firms make decisions on the assumption that their effect to the overall market is negligible and, they can not alter the market demand (Roger, 2001).
On the other hand, a monopoly market structure is where we have only one seller or producer. In this case the firm is also the industry (Roger, 2001). There are restrictions of entry to monopoly market because of high costs. Other factors that may put barriers to this market could be: social, political, or economic factors (Roger, 2001).
Monopoly exercises capitalism in the market. It has been said that many systems fail to work when they have only one provider of products as they lack incentives to produce or sell products which satisfy the consumer needs. Also, when a firm is given patent rights ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“[ECONOMIC] Different Market Structures & their Effects on Cusumers and Essay”, n.d.)
[ECONOMIC] Different Market Structures & their Effects on Cusumers and Essay. Retrieved from
([ECONOMIC] Different Market Structures & Their Effects on Cusumers and Essay)
[ECONOMIC] Different Market Structures & Their Effects on Cusumers and Essay.
“[ECONOMIC] Different Market Structures & Their Effects on Cusumers and Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF [ECONOMIC] Different Market Structures & their Effects on Cusumers and Producers [WRITTER REQUIRE to have: ECONOMICS 4th Edition Book by: Stephen Ison & Stuart Wall]

Economics Regulation and Market Structures

...sometimes a market can only support one producer. According to economic theory, firms can attain monopolies because of unique raw materials, technology, or other factors. An example of a natural monopoly is the gas industry. It is uneconomical to build new infrastructure so just one set of infrastructure is built. This results in company having total control of the market (Pieterz). The antitrust laws attempt to order business to compete fairly. These laws have greatly affected the business practices of U.S. industries. The basis behind the laws is that free trade should help the economy, businesses, and consumers. The main four pieces...
2 Pages(500 words)Essay

Different Research Questions Require Different Research Methods

...of the paper is to analyse the various research methods, particularly Qualitative, Quantitative, Experimental and Exploratory approaches along with the significant factors that have been considered while determining the research methods. Similarly, it has been also intended to identify in this paper whether ‘different research questions require different research methods’. Thus, it should be taken into consideration while observing the entire scenario as it is a well known fact that research methodology can be best explained as a method by which the problem of the research can be worked out in a structured way. Types of Research Methods Qualitative...
9 Pages(2250 words)Essay

Health economics, market structures, government interventions

...?ANSWERS FOR ECONOMICS QUESTIONS ANSWER Market as a whole is divided into four forms of structures based on the characteristics. These four marketstructures include perfect competition, monopolistic competition, oligopoly and monopoly. The distinct characteristics of each market structure are defined as follows (Froyen, 2009): PERFECT COMPETITION: Many firms offer similar product. Due to large number of firms in industry, the firms are forced to accept prices set by demand and supply in the market. Structure does not create barrier for entry and exit to market. Organizations to gain profits perform with...
4 Pages(1000 words)Assignment

Differiating Between Market Structures

...? Differentiating Market Structures Introduction Markets in economics are ified according to the structure of the industryserving the market. Ideally, the industry structure is categorized on the basis of market structure variables, which in turn determine the characteristics and extent of competition (Stackelberg et. 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...
4 Pages(1000 words)Essay

Market structures

...? Market Structures Introduction In order to understand the different types of market structures a thorough analysis is required for understanding ofthe 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. Therefore the...
11 Pages(2750 words)Essay

Market Structures Analyses

...The Grapes Of Wrath - A market structure analysis Pure Competition Chapter 25 of The Grapes of Wrath speaks about the Californian land owners and their crops during the spring. There are cherries, oranges, peaches, pears and grapes everywhere and the earth smells of ripe and fresh fruits. The owners stand by and calculate their profits for that year. But the country is in a state of depression and there are hungry and downtrodden everywhere. The owners soon realize that their produce is not going to bring in the gains they had calculated. There are millions of producers around them but the buyers don't have money and can't afford the good crops. The producers can't afford the labor without selling their crops. Their debts build... individual...
6 Pages(1500 words)Essay

Market Structures

...Running Head: [short [institute of affiliation Explain the difference between a monopoly and an oligopoly, and a cartel. The difference between monopoly, oligopoly and cartel lies on the apparent concentration of market power within an industry. Monopoly is a market situation where there is a single player in an industry. Being a single, largest or sole producer of most of the industry supply a monopolist gains power over decisions in influencing prices and output in the market. Because it has no competitor, the whole market depends on the monopolist’s production, and this dependence gives the monopolist power to raise...
3 Pages(750 words)Essay

Market Structures

...the marginal cost curve for the monopolist (MCsm) for the short run. MCsm is the summation of the short run supply curves (SRSc) in the competitive market. The loss of producers’ surplus (area B) and consumers’ surplus (area B) arises from the profit maximizing decision of the monopolist. A monopolistically competitive firm can operate above the level of normal profit. (Krčílková, n.d. p. 10). The above figure represents the economic loss for a monopolistically competitive firm. For a monopolistically competitive firm economic profits are zero and at equilibrium average total cost equals price. Both the firms in monopolistic competition and perfect competition are able...
3 Pages(750 words)Essay

Company under Different Market Structures

...Company under Different Market Structures Introduction The term market structure is used to denote to the number of firms engaged in producing identical products. Different types of markets namely perfect competition, monopolistic competition; monopoly and oligopoly constitute the market structure (Central Washington University, 2003). Some other types of markets include duopoly and monopsony. General features of the market structures Perfect Competition A large number of small firms comprise the...
4 Pages(1000 words)Assignment

Market Structures

...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 major yardstick that economists use in defining market structures is the pricing modes and the nature of competition in a particular market. Alternatively, economists define a market structure in terms of the number of participant firms that produce similar goods and services....
2 Pages(500 words)Essay
sponsored ads
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.

Let us find you another Essay on topic [ECONOMIC] Different Market Structures & their Effects on Cusumers and Producers [WRITTER REQUIRE to have: ECONOMICS 4th Edition Book by: Stephen Ison & Stuart Wall] for FREE!

Contact Us