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Conditions for a perfectly competitive market

(a) What are the conditions for a perfectly competitive market?

(b) What are the conditions for a monopolistic market?

(c) What are the conditions for a monopolistic competitive market?

(d ) What are the conditions for an oligopolistic market?

(e) How would you explain the differences among these market structures? Identify which market structure your organization competes in and why you think so.

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The response addresses the queries posted in 644 words with references.

// Before understanding the concept of' business success', it is necessary to know about the 'Market Structure'. Not only this, based on the market structure, it is required to devise the strategies. So, firstly, I am explaining the Conditions for a perfectly competitive market.//

Market structure

A. Following are the conditions for the perfectly competitive market:

Ø There should be numerous small firms that are producing homogenous goods

Ø No single firm should have influence over the pricing of product, it deals with

Ø In a perfectly competitive market, there should be Low entry or exit barriers

Ø In this market condition, Perfect information is available for both the parties I.e. Consumers and producers.

Ø The main aim here is to make huge profits. Here the firm focuses on selling at the point, where marginal cost convenes with the marginal revenue, so as to earn immense profit.

// Above I have provided the information regarding necessary conditions for a perfectly competitive market. I am providing Conditions for the monopolistic market, monopolistic competitive market and oligopolistic market in the following manner, so that the concept regarding the market become more clear.//

B. Conditions for the monopolistic market

Following are the conditions for the monopolistic market:

Ø One of the prime ...

Solution Summary

The response addresses the queries posted in 644 words with references.

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