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    Market structure

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    In the hope of high returns, venture capitalists provide funds to finance new (start up) companies. However, potential competitors and structures of the market into which the new firm enters are extremely important in realization of profits. Among different market structures, which one do you believe provides the highest possible return for a new company and why?

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    Market structure is determined by the number of firms and customers in a given industry. In economics, the most common types of market structure are Perfect Competition (many sellers and buyers), Oligopoly (few sellers, many buyers), and Monopoly (one firm and many buyers).
    By definition, only a monopoly can take ...

    Solution Summary

    Market structure is exemplified clearly.