Market Structures

In: Business and Management

Submitted By arider17
Words 2943
Pages 12
Market Structures
Adam Timothy Rider
ECO204: Principles of Microeconomics
Evelyn Carlson
10/13/2014

When trying to gain insight into the local economy it is very important to understand the big picture of how the various market structures relate to each other. This can be accomplished by putting together some of the smaller pieces or characteristic of the market structure. These characteristics can be organizational, competitive or a variety of other features that categorize a firm as a specific market structure. Individual market structures can be described as the amount of firms producing identical goods and services. If you can identify the market structure you can often identify how they firms within the structure are going to price their products in the industry. The market structure will have an effect on the supply and demand of the different commodities in the market. The market structure will also influence barriers for entry and exit in the industry. In order to understand these structures in an economic community you must obtain an understanding of how they all work together to form the economic community. By the end of this report you will possess the necessary knowledge to understand the market structures in the micro economy. Before we begin to the inevitable breakdown of the individual market structures it is important to identify some of the key features of market structure in general. First it would be important to look at the number of firms in the market. This would include local and foreign markets. Next you should be aware of the concentration ratio of the given company. This will allow you to determine the market share held by the individual companies. Another important feature is the amount and nature of costs in the market. This analysis will allow you to show how costs affect contestability in the…...

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