Home Business Business Economics

Business Economics

2 min read
0
0
713

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. 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.

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.

  • How to Become a Teacher

    Teaching is one of the most honourable and satisfying careers a person can choose. In orde…
  • Smart Tech: Top Jewellery Picks

    Smart jewellery has been around for a while now. With Virtual Reality taking up so much of…
  • Online Pharmacy

    E-Commerce: Online Doctors

    In 2015, the UK government took a substantial step to assist patients in the UK with avail…
Load More Related Articles
  • How to Become a Teacher

    Teaching is one of the most honourable and satisfying careers a person can choose. In orde…
  • Smart Tech: Top Jewellery Picks

    Smart jewellery has been around for a while now. With Virtual Reality taking up so much of…
  • Online Pharmacy

    E-Commerce: Online Doctors

    In 2015, the UK government took a substantial step to assist patients in the UK with avail…
Load More By Dylan
Load More In Business

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

How to Become a Teacher

Teaching is one of the most honourable and satisfying careers a person can choose. In orde…