Understanding the market structure you are operating in defines:
A)the price you should set.
B)what quantity to produce.
C)how much your competitor's behavior will affect you.
D)how advertising will be interpreted by consumers.

Question

Quizplus · Accepted Answer

Understanding the market structure you are operating in helps you understand how much your competitor's behavior will affect you. For example, in a monopolistic competition market structure, your competitors' behavior will likely have a greater impact on your sales and profits compared to a monopoly market where you are the sole provider of the product or service.

Understanding the Market Structure You Are Operating in Defines