The competitive structure of a market is defined by the number of competing firms in some segment of an economy and the proportion of the market held by each competitor. Market structure influences pricing strategies and creates barriers to competitors wishing to enter a market.
Types of Competition Based Market StructuresThere are four basic types of competition based market structures. They are pure competition, monopolistic competition, oligopoly, and monopoly.
Pure competition exists when there are no barriers to competition. The market consists of many small, competing firms and many buyers. This means that there is a steady supply of the product and a steady for demand for it.… Read the rest