Market Structures

The market structure defines the nature of the market in relation to the factors that affect pricing, competition, substitutes among others. These factors will determine whether the firms are price takers or price setters, whether there is perfect competition or controlled competition, and whether there are close substitutes or not. These factors are as a result of government policies and other market factors. From these factors, markets can be classified as perfect competition, monopolistic competition, oligopoly, or monopoly markets.

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The international trade also affects the market structure through the introduction of subsidies or through setting the trends. Therefore, it can be conclude that the structure of the market is determined by the role the government plays in controlling the competition, consumption and international trade.

References
Arnold, R. A. (2010). Elasticity of Demand. London: Prentice Hall.
Krugman, P. R., & Elhanan, H. (2007). Market Structure and Foreign Trade: Increasing Returns, Imperfect Competition, and the International Economy. New York: MIT Press.

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