Market Structures

There ar four major graphic symbols of grocery stores. The first type of market structures is minute Competition. Pure competition is all(prenominal) close heavy(a) bet of buyers and sellers trading a standardized intersection such as corn or rice. In pure competition at that place ar a large number of buyers and sellers issuing a standardized product. There are “ worth takers.” Meaning no unity firm can arrogate the market price. Individual competitor is at the mercy of the market also. Besides “price takers,” there is free entry and spend into the market.
Pure monopoly is the second type and this structure involves single one seller. Here, the firm is the industry itself. The firm or company is the only seller of a certain product and there are no substitutes. An example of this would be Meralco. Meralco is the only company in the Philippines that distri thates electricity. Companies with a monopoly structure have the advantage of raising or dropping prices.
Monopolistic competition is the third type and here, there exists a large number of buyers and also a large number of sellers each selling a similar but slightly several(predicate)iated product. An example of this would be cigarettes where there are several brands such as Marlboro, Winston and Dunhill.



All these brands market different flavours but none of them have the same taste or flavour that the new(prenominal) brand has. All these products are non identical but are similar because they are all cigarettes.
The fourth type of structure is oligopoly. There are genuinely hardly a(prenominal) sellers that acknowledge that decision of one firm affects the others and takes this situation into account when making production or pricing decisions. These few sellers offer identical or very similar products.
foodstuff structures are important in every business because through these, you are able to understand your own businesses and also other businesses that can affect your own. These market structures should also be analyse because it is a tool to properly study the business and...If you indispensability to get a full essay, order it on our website: Ordercustompaper.com



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