Market structure

Question

Market structure

Quizplus · Accepted Answer

Market structure refers to how an industry is organized and how firms interact with each other in that industry. The different types of market structure, such as perfect competition, monopolistic competition, oligopoly, and monopoly, have different qualities that affect the behavior of firms. For example, in a perfectly competitive market, firms have no market power and must accept the market price for their goods or services. In an oligopoly, a few large firms dominate the market and may engage in strategic behavior such as price collusion or non-price competition. Therefore, market structure influences the forms of competition among firms.

Market Structure