Notes On Market Structures And The Elasticity Of Demand...

Market Structures Instructor Friedline Dianglio V Baylor ECO204 MicroEconomics June 28, 2015 Market Structures It is very important to understand the different structures of market in any given town, city or municipal state. Among the market structures believed to exist include oligopoly, perfect competition, monopolistic, monopoly and oligopoly. In real sense, however, most of these structures do not exist though it is believed that they partly exist depending on the interpretation by different individuals. This paper will therefore look at different market structures, give their various characteristics and cite a real life example. It will also look at different barriers in markets that might affect long term profitability of firms. Furthermore, it will look at the role of government in pricing, the elasticity of demand and how international trade affects each of them. What the paper will bring is interpreting that it is quite difficult for most market structures to exist in the real world. As reported by Norman et al (2000), there are many market structures that exist. They include perfect competition, oligopoly, monopoly and monopolistic competition. They have a number of distinguishing characteristics which identifies them from each other. Perfect competition market is sometimes referred to as pure competition market. The author suggests that the market is one where the participants are equal hence the market power is shared between them. TheShow MoreRelatedMonopoly and Discussion Board Posts1554 Words   |  7 Pages1. 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