ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Select the four main characteristics used to classify markets into market structure.
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Type of product
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Number of buyers and sellers
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Type of economy
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Influence on price
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Barriers to entry
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Explanation:
Detailed explanation-1: -Common barriers to entry include special tax benefits to existing firms, patent protections, strong brand identity, customer loyalty, and high customer switching costs. Other barriers include the need for new companies to obtain licenses or regulatory clearance before operation.
Detailed explanation-2: -The four main types of market structures are perfect competition, monopolistic competition, oligopoly and monopoly.
Detailed explanation-3: -1] Perfect Competiton. In a perfect competition market structure, there are a large number of buyers and sellers. 2] Monopolistic Competition. This is a more realistic scenario that actually occurs in the real world. 3] Oligopoly. 4] Monopoly.
There is 1 question to complete.