Market structure has significant impact on:
A)the long-term profitability of sellers in a market.
B)the market demand in the market.
C)whether the product in a market is a good or a service.
D)whether the product is worth purchasing.

Question

Quizplus · Accepted Answer

Market structure refers to the number and size distribution of sellers in a market, the degree of product differentiation, barriers to entry, and other factors that affect competition. The structure of a market can have a significant impact on the long-term profitability of sellers in that market. In a highly competitive market with many sellers, profit margins are likely to be lower than in a market with few sellers or high barriers to entry. Therefore, the long-term profitability of sellers in a market is highly influenced by market structure.

Market Structure Has Significant Impact On