Kudler Fine Foods Market Structure Essay

The organization and characteristics of a specific market where a company operates is referred to as market structure. While markets can basically be classified by their degree of competitiveness and pricing, there are four types of markets i.e. perfect competition, monopolistic competition, monopoly, and oligopoly. In perfect competition markets, many firms are price takers whereas monopolistic competition markets are characterized by the ability of some firms to have market power. In contrast, oligopoly markets are those in which few firms can be price makers while monopoly market is where one firm can be a price maker.

While a monopoly usually involves one firm with significant control on the market, an oligopoly contains a few firms. An oligopoly is a market structure where a few companies selling identical or differentiated products control the marketplace. The few players in an industry are usually quite large compared to the market for the product, thus giving these few players an advantage at market control. There are barriers to entry in oligopolies that include patents or government grants, ownership of resources, cost prohibitive barriers, brand equity and diminishing average cost.

When a product is produced, the company that produces that particular product falls into one of four categories: pure competition, monopolistic competition, oligopoly, and monopoly. Depending on how many companies are producing a product determines what market structure the company is labeled. Each category determines how a company will use pricing and non-pricing to advance in the economy. The United States economic market is competitive with various buyers and sellers, and each company is constantly looking for ways to be better than its neighbor. The following examples of each category will show different companies and how they use pricing and non-pricing to advance to

Pure Monopoly is one firm or company that controls the whole market whether there may not or may be substitutes. Oligopoly is a market dominated by a few large producers of a "homogeneous" or differentiated product. Monopolistic Competition consists of large number of sellers, with differentiated products making it easy to enter to and exit from the industry. Pure Competition is an economic model that describes a hypothetical market form in which no producer or

To begin with, a monopolistic competition is one of the four major market models. A monopolistic competition is an industry made up of many producers. The producers in a monopolistic competition provide differentiated products. Product differentiation includes varied physical characteristics of products, customer service, and or locational convenience. Differentiation allows firms to be prominent in the industry. Since goods and or services are differentiated, there is a considerable amount of emphasis on non-price competition, advertising. Although the competition is prevalent in this market, entry into the industry is

Market structures are either imperfect competition or perfect competition, referring to the environment in which a firm competes in. These are monopolies, oligopolies, monopolistic competitions, and perfect competitions. A monopoly is one market in which there are no substitutes and entry is difficult into the market. There are four variables for a monopoly to occur. An oligopoly is a market structure that has only a few sellers but the products are either differentiated or homogeneous. Monopolistic competition has elements of both a monopoly and a perfect competitor. With multiple sellers and differentiated products, a monopolistic competitor is able to produce with these advantages of both market structures. The final market structure is perfect competition. Perfect competition occurs when there are many sellers and buyers, identical products, mobility of resources, and complete knowledge of the market. Overall, a firm must decide which market structure is best to involve themselves in. A pure monopoly is not legal in the United States, but a natural monopoly or one enabled by the government is. An oligopoly is uncertain in the long run analysis. A monopolistic competitor must make sure it’s price strategy is suitable for the industry or they will stand to lose profit. Perfect competition, however, “has never really existed” (Salvatore, 2012, p. 374). Therefore, a firm faces a difficult task in deciding which market structure to produce in and must

Finding the suitable market structure can a significant factor in the way business will succeed or fail. The interconnected characteristics of a market, the number of buyers and sellers, level and forms of competition among them, extent of product differentiation, and ease of entry into and exit from the market called market structure (BusinessDictionary.com, 2014). There are five different types of market structure: Perfect competition, Oligopoly, Monopoly, Monopolistic Competition and Monopsony.

Market structure defined as the number of firms producing identical products which are homogeneous in economics. There are four types of market structure in economics which are perfect competition, monopolistic competition, oligopoly and monopoly. The imperfectly competitive structure is quite identical to the realistic market conditions where some monopolistic competition, oligopoly and monopoly exist and dominate the market conditions. The elements of Market Structure include the number and size distribution of firms, entry conditions, and the extent of differentiation. However, perfect competition consider as perfect competitive structure because the profit maximization of this market is the marginal revenue(MR) equals to marginal cost(MC)

There are different market structures prevalent in the world. For example, Monopolistic competition, Oligopoly, Monopsony, Oligopsony, Monopoly and Perfect competition are some of the chief examples of the market structure. Each has its own standing or meaning for the business. However, considering the Perfect competition and monopoly for this discussion, both structures remain at variance on different aspects.

In monopolistic competition, each firm is the sole producer of a particular brand or product. It is a market structure whereby there is competition among a large number of monopolists. Example of monopolistic competition is smart phones market. In the market, there are many brands like Nokia, Samsung, HTC, Apple and etc. All these brands seems to have full competition, with numbers of brand and freedom to entry.

A market structure is where the physical characteristics of the market, where firms interact (). Market structures can highlight the criteria of firms, and express the barriers that they may face with entering. There are four types of competition across various market structures. The types of competition are perfect competition, monopolistic competition, oligopoly, and monopoly. Each types of market structures are a direct reflection of the current economic market state. When a company assesses market structures, the company must conduct proper research on the customers, competition, and costs. Understanding the current nature of the economy is instrumental in the success of the company in different market structures.

Pure monopoly and perfect competition are two extreme cases of market structure. In reality, there are markets having large number of producers competing with each other in order to sell their product in the market. Thus, there is monopoly on the one hand and perfect competition, on the other hand. Such a mixture of monopoly and perfect competition is called monopolistic competition. It is a case of imperfect competition.

Markets are different, without these different markets there would not be any structure. Being able to understand different markets and its language, like demand, supply, average variable cost and marginal costs we can better prepare for economic and financial future. The market structure and the interaction that occurs can be defined by the number of businesses, and barriers new firms have when entering a particular market. Perfect competition, monopoly, monopolistic and oligopoly are four forms of market structures recognized by economists.

The connection between characteristics of a market, such as the number and strength of buyers and sellers, severity of complicity amid them, as well as the levels of competition and contrast of product and ease of entry and exit barriers determines the type of market structure. Perfect competition, monopoly, oligopoly and monopolistic competition are four basic market structures. Economists watch the different market structures in an attempt to predict consumer behavior. “Firms use markets to achieve sales and profit goals while consumers use markets to reach various consumption goals” (Redmond, 2013, pg. 433). Evaluating each structure will help in assisting firms with decision making to better understand competition and consumer

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