{"id":266453,"date":"2024-10-17T13:39:24","date_gmt":"2024-10-17T13:39:24","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=266453"},"modified":"2024-10-17T13:39:24","modified_gmt":"2024-10-17T13:39:24","slug":"market-structures","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/market-structures\/","title":{"rendered":"Understanding the Four Types of Market Structures: A Beginner's Guide"},"content":{"rendered":"

All business firms operate in a market. When we talk about a market, most people consider it a place where goods and services are sold and purchased. However, the definition of a market is different in economics. In economics, the market is not only a place where buyers and sellers meet to exchange goods and services. It also considers types of goods and services, number of buyers and sellers (competition) and information flow. Because of this complexity, market structures have also emerged and are being studied.<\/span><\/p>\n

Firms in a marketplace need to know their market structure to make the right decisions. Market structure is a way to understand the degree of competition in an industry. There are generally two types of market structures: perfect market structure and imperfect market structure.<\/span><\/p>\n

Now, the question is, what determines a market structure? If you want to be a financial analyst and are interested in enrolling in a <\/span>CFA course<\/span><\/a>, you should be able to identify which market structure a company falls in.<\/span><\/p>\n

Market Structures<\/span> - Chief Considerations<\/span><\/h2>\n

While competition is one of the main factors determining a market structure, that is not all. Economists combine several market elements together to put together a market structure. A firm analyses its position in the market based on the following determinants and, thereby, defines within which market structure it falls:<\/span><\/p>\n