Definition of Market structure:
The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entry into and exit from the market
Four basic types of market structure are (1) Perfect competition: many buyers and sellers, none being able to influence prices. (2) Oligopoly: several large sellers who have some control over the prices. (3) Monopoly: single seller with considerable control over supply and prices. (4) Monopsony: single buyer with considerable control over demand and prices.
How to use Market structure in a sentence?
- I told my friend about the market structure and how everything worked because he wanted to get into business and marketing.
- The market structure was set up that there would be a useful feedback loop between the buy and seller based on communication.
- If you can read and comprehend the market structure then you may be able to see when something is off and take advantage.
Meaning of Market structure & Market structure Definition