Introduction to Market Structure

Question 1

Define market structure:

Answer 1

Economic environment within which a firm produces and distributes its good or service

Distinguishing factors:

• Number of sellers and buyers
• Nature of the commodity

Question 2

What are the two extremes of market structures?

Answer 2

1) . Perfect Competition

2) Perfect monopoly

Question 3

What are the four different market structures?

Answer 3

1) Perfect competition
2) Perfect monopoly
3) Monopolistic competition
4) Oligopoly