Studying economics is a necessity for all students as it is in our daily use. Economics helps us to maintain our living while prioritizing the main things in our lives. Students who have an interest in the respective field of Economics, choose this field as their specialization throughout higher structure education. There are many activities that students have to perform throughout their education and it is difficult for the students to meet all the requirements of various activities at the same time. It has never been easier for students to write effectively market for economics acid demands a lot of interest and commitment toward the respective field of academics.
Activities provided to the students are highly beneficial for the best understanding of the concepts and to enhance their grades throughout the program. To understand the requirements of an economic assignment, students can approach online assignment writing services. This can help students meet the standards of economic assignments and understand the guidelines provided by the instructors.
There are different structures of the market in economics. It is one of the most important and famous topics in economics that is provided to the students for essay writing. Let’s see and discuss each structure of the market in economics.
Pure Competition
In pure competition, there are a large number of competing organizations. They compete with each other in the market. A single firm cannot influence the marketing power, which results in maximum output as it cannot influence the market price. Demand and supply play an important role along with the market price set by the firms. One of the main advantages of pure competition is that each product is identical and there are easy entry and exit in this specific structure of the market.
Pure competition is also known as perfect competition. However, pure competition is rare to find in the real world as it is just a theory to look at the industries through different perspectives. Online shopping, the foreign exchange market, and agriculture are some of the examples of perfect competition.
Monopolistic Competition
Just like perfect competition, monopolistic competition is one of the market structures that involves a large number of small firms. The only difference between monopolistic and perfect competition is that in monopolistic competition the products are similar but differentiated. They focus on the lowest cost for production and charge higher prices within limits. The products in monopolistic competition are similar but just a small change in advertising defines the firm. Advertisement, location, and price strategies, are some of the small changes that make differences among products.
Let’s just an example of monopolistic competition, just an example of hair salons and spas they have the same products but are differentiated through brands and style. Producers are attracted when they see the profits and in monopolistic competition, it is easy to enter and exit just like in perfect competition.
Oligopoly
The oligopoly is unlike the pure and monopolistic competition structure of the market. This particular structure of the market involves a small number of large firms in the competition. So there is Limited competition in the market. It is up to the competitors if the phone to work collectively or to compete against each other to change the prices as per their want to earn high profits. It is difficult to enter such a market as the entire resources are controlled by powerful companies. These resources are the raw material, patents, and other physical resources. However, if prices are too high in an oligopoly, the customer will head towards a substitute of the product in the market.
In an oligopoly market, products can be similar or can be differentiated. Cable television, the auto industry, and air travel are some of examples of an oligopoly market. Production, pricing, and profits are some of the factors that can change the relationship between sellers and buyers.
Pure Monopoly
In this specific market structure, there is only a single firm that controls the entire market. In a pure monopoly, a single firm is the sole producer of the product. In a pure monopoly, there is no substitute for the product in the market. As there are no alternatives to the product, the firm can charge the prices they want. In short, in a monopoly, they can decrease the output, increase prices, and earn large profits.
There is no entry or exit in pure monopoly and there are some of the examples that can explain the specific structure market, which can include utility Store services, sports Leagues, and many other things. It can take a lot of capital to compete against the Monopoly. Intel, Microsoft, DeBeers, and diamonds, are some of the great examples to understand the pure monopoly market structure.
Conclusion:
Four market structures can help entrepreneurs act accordingly as per the requirements and needs of the product. The above-mentioned four structures of the market can help students write an effective essay for all four factors of the market. Each structure has its importance, advantages, and disadvantages which help the firms from different perspectives. However, students can complete their economics assignment on the topic of economics market structures.