ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The four main characteristics that economists use to define market structure are: number of producers, similarity of products, ease of entry, and control over prices. 1. number of producers: The number of producers in a market “helps determine the level of competition.

Detailed explanation-2: -According to economic theory, market structure describes how firms are differentiated and categorized by the types of products they sell and how those items influence their operations. A market structure helps us to understand what differentiates markets from one another.

Detailed explanation-3: -The elements of Market Structure include the number and size of sellers, entry and exit barriers, nature of product, price, selling costs.

Detailed explanation-4: -The only characteristic that all firms have in common is that they all maximise their profits at the point where the marginal revenue (the additional revenue of an additional unit) equals the marginal cost (the additional cost of an additional unit).

Detailed explanation-5: -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.