Market Structure Essay -- essays research papers

Market structure is defined as the particular environment of a degenerate, the characteristics of which influence the firms pricing and output decisions. There are four theories of market structure. These theories arePure competitionMonopolistic competitionOligopolyMonopolyEach of these theories produce nearly type of consumer behavior if the firm raises the footing or if it reduces the price. The theory of pure competition is a theory that is built on four assumptions (1.)There are umteen sellers and many buyers, none of which is large in relation to total sales or purchases. (2.) Each firm produces and sells a homogeneous product. (3.) Buyers and sellers have all relevant information about prices, product quality, sources of supply, and so forth. (4.) Firms have easy entry and exit. A pure competitive firm is a price taker. A price taker is a seller that does not have the ability to control the price of the product it sells it takes the pri...