{"id":258999,"date":"2024-02-02T07:13:29","date_gmt":"2024-02-02T07:13:29","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=258999"},"modified":"2024-03-19T06:18:46","modified_gmt":"2024-03-19T06:18:46","slug":"markets-monopoly-duopoly-oligopoly-and-perfect-competition","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/markets-monopoly-duopoly-oligopoly-and-perfect-competition\/","title":{"rendered":"Markets: Monopoly, Duopoly, Oligopoly and Perfect Competition"},"content":{"rendered":"

The definition of market has a wide scope and not all markets are similar. Markets, better known as the market structure, generally refers to the degree of competition that exists in the industry dealing with various goods and services. There are numerous factors that influence the market structure and create a great impact on the distribution of goods and services.\u00a0<\/span><\/p>\n

Factors like the type of sellers within a market, the number of sellers and the type of goods and services they sell, the number of consumers etc highly influence the market structure. Additionally, there are certain conditions regarding the entry and exit of marketers such as the profitability of the business, trade barriers if any, government restrictions and so forth. An insightful <\/span>senior leadership program<\/strong><\/a> may help individuals understand the market structure and its various elements in an in-depth manner.<\/span><\/p>\n

Read on to understand the major types of market structure in an economy and how it influences the pricing of various goods and services.<\/span><\/p>\n

Types of Market Structure<\/span><\/h2>\n

Market structure is mainly categorised based on the level of competition in the sector of various goods and services. When multiple market structures come together, it forms an economy. However, not all these types of market structures actually exist in reality, but some of them are mentioned theoretically for the purpose of better understanding the underlying principles behind the classification of markets.<\/span><\/p>\n

One may register for the <\/span>IIM online courses<\/span> offered by <\/span>Imarticus Learning<\/span><\/a> to better understand the market structures and their changing dynamics. There are four major types of market structure that can be categorised as follows:<\/span><\/p>\n

Monopoly<\/span><\/h3>\n

Monopoly is a type of market structure where a business dominates the entire market with little to zero competition and no substitutes.\u00a0 When an enterprise holds a monopoly, it can decide and set product costs according to its convenience subject to the restrictions of the Government, if any.\u00a0 Additionally, it can develop barriers in order to keep potential competitors away from entering the market.<\/span><\/p>\n

The monopolistic market condition consists of a single seller who dominates the market with its unique products and services that do not have any close substitutes. The participant of the monopoly market is a price maker who possesses significant control over the market. Players in the Monopoly market have a significant competitive advantage which helps the businesses to build a strong brand name.<\/span><\/p>\n

However, entering this type of market structure is not easy. Monopolistic markets have a large number of barriers that restrict new players from entering the existing market. Due to the overwhelming dominance over the marketplace of the monopolist, prices of goods and services tend to go up.<\/span>
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