The Types Of Market Structures - 1640 Words

A market structure is where the physical characteristics of the market, where firms interact (). Market structures can highlight the criteria of firms, and express the barriers that they may face with entering. There are four types of competition across various market structures. The types of competition are perfect competition, monopolistic competition, oligopoly, and monopoly. Each types of market structures are a direct reflection of the current economic market state. When a company assesses market structures, the company must conduct proper research on the customers, competition, and costs. Understanding the current nature of the economy is instrumental in the success of the company in different market structures. 1. Perfect†¦show more content†¦Even in perfect competition market, the demand and supply can shift at any moment. Most of the time, the shift has already been predicted. Within a perfection competition market, there a different types of equilibriums. The different types of equilibriums within a perfect completion are the competitive, long-run, and market equilibriums. The competitive equilibrium emphasizes that a perfect competition has four common characteristics. The first characteristic of a perfection competition is when a large number of firms produces goods or service for a market that has a large amount of consumer. The second characteristic of a perfect competition is that there are no barriers for new firms to enter the markets at any time. The third characteristic of a perfect competition is all of the firms in the market sell produces that are identical in nature. The fourth characteristic of perfect competition is that all firms and consumers are price takers (). This means that the firms will have product for sale at a certain price, and the consumer will have no problem purchasing the product at that price. Consumers do not influence the prices at all in a perfect competition. The long-run equilibrium emphasizes that a perfect competition firms can enter and leave a market whenever they choose to. Long-run equilibriums will initially show profits. After a long period of time, the price will ultimately end up at a stall,