Market Structure: A market is a place where consumers meet to trade. There are different kinds of markets each having its own unique characteristics. There are various factors affecting characteristics of a market. These factors include price, demand, supply, government policies among others.
It is imperative for businessmen to understand the kind of market structure in which their premises operate. Understanding the market enables traders to make strategic decisions regarding the business. Consumers should also understand the market structure to enable them make informed decisions when seeking for goods and services.
In this market, demand, supply and price play a huge role in trading. Unlike monopoly, market, no trader controls the market operations. The products sold by the traders in this market are similar. The major variance is how the products are packaged,
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In oligopoly markets, the government regulates the market to curb mergers. Mergers create reduce competition and make firms control the market. The government can also intervene in pricing.
In countries where the per capita income is high, consumers spend more, and that is encouraging for new business enterprises. The political environment in a country can influence the market performance for businesses in that environment. Political factors can favor or can at times cause the closure of a business.
Political sanctions and embargoes can eliminate various market opportunities and limit investment. There are international laws, local legislation and state laws that govern business environment across the world (Solow, 1998).
Arnold, R. A. (2011). Microeconomics 10e, Mason, OH: South-Western Cengage Learning.
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