Market Sturcture

Market Structure

Market structures consist of various characteristics of particular markets, including their dimensions and worth, the amount of providers and their market share, the purchasing behavior of actors in the market, and growth forecast. This paper will detail the many facets involved in market structures and the necessary factors involved in the potential for maximizing their profit. With the many speculative market structures to explore, it will be of significant interest to untangle the theories for each: competitive markets, monopolies, and oligopolies in efforts to clarify the understanding of how actual markets operate in an economy as each has the specific goal of maximizing profits through interactions in the wonderful world of supply and demand.
A monopoly consists of a single seller and in this case a single business is the industry. This type of market is typically inaccessible because it is either too pricey and or involves several challenges that makes it next to impossible. Some may be political, economic, or social. For example, the government controlling power and as a result they have sole control with individual rights over this resource. Another example is that a company can have a patent on their product that restricts others from profiting such as Pfizer had on Viagra. In a monopoly price setting is determined by the market demand. The reason being is if they were to increase the price of their goods, consumer demand would decrease but if the monopolist lowers the quantity of the output it sells the price of its output increases. Naturally they would favor charging a substantial amount for their good and furthermore sell a great amount at that price but because the firm faces the market demand curve it is impossible. In a monopoly, to produce one good means that it can sell at a higher price but once additional goods are produced means that the price has to drop for more to sell. The primary thing here is that the...