ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Entry into market, number of firms, influence over price, product differentiation, advertising
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Entry into market, economic freedom, individual freedom, competition, advertising
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Number of firms, price differentiation, role of government, individual freedom, advertising
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Influence over price, product differentiation, property rights, entry into market, role of government
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Detailed explanation-1: -The elements of Market Structure include the number and size of sellers, entry and exit barriers, nature of product, price, selling costs.
Detailed explanation-2: -Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly. The categories differ because of the following characteristics: The number of producers is many in perfect and monopolistic competition, few in oligopoly, and one in monopoly.
Detailed explanation-3: -The five major market system types are Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition and Monopsony.
Detailed explanation-4: -There are several basic defining characteristics of a market structure, such as the following: The commodity or item that’s sold and the extent of production differentiation. The ease or difficulty of entering and exiting the market. The distribution of market share for the largest firms.