Ideally, a market is a place where two or more parties are involved in buying and selling. The people involved in marketing are the buyer and the seller. The seller earns money as a buyer purchases the products such as the Xiaomi mi 8. There has to be more than one buyer and seller for the market to be competitive. There are different types of market structures that can characterize a country’s economy. There are four basic types of market structures:
Perfect competition describes a market structure, where a large number of small firms compete against each other. This market structure is a theoretical model that does not exist in the real world and is instead used as a benchmark to measure other types of markets.
The monopolistic competition also refers to a market structure, where a large number of small firms compete against each other. However, this market structure will no longer result in a socially optimal level of output, because the firms have more power and can influence market prices to a certain degree for example with mini ovens.
Oligopoly describes a market structure which is dominated by only a small number firms.
Monopoly refers to a market structure where a single firm controls the entire market.