Types Of Market Structure

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Classification of markets (market structure) and its practical importance. Relate it to the world of real competition with illustrative examples.. Market structure is the characteristics of the market. The major characteristics in describing the market structures are the nature of competition and the mode of pricing in the market. Market structures can also be described as the number of firms in the market that produce identical goods and services. The market structure will influence the behavior of individuals firms in the market very much & affect how firm price their product in the industry. Types of market structures Monopolistic competition, is a type of imperfect competition such that many producers sell products…show more content…
Examples of monopolistic competition Examples of monopolistic competition is there in all markets. Monopolistic competiting firms are most common in industries where differentiation is seen, such as: The restaurant business Hotels and pubs Consumer services, example hairdressing The survival of small firms The existence of monopolistic competition explains the survival of small firms in today’s economies. The majority of small firms in the real world are in markets that are said to be monopolistically competitive. example: Some restaurants enjoy monopolistic competition because of their popularity and reputation. Some newspaper in some places enjoy almost monopolistic position in spite of existence of other competitors. Manufacture of some high precision products, such as multi-cylinder diesel engine fuel injection pumps, enjoy monopolistic competition because their competitors are not able to match their quality…show more content…
The suspicion is well placed since most of the conditions for cartel formation are strongly satisfied in the cement markets in India. The presence of price control and market sharing in the zonal markets, especially in an industry like cement industry with high amount of cross holding of shares between some of the companies. The suspicion of price control is evident from 2007-08 onwards till the period Mar-2011, and that of market sharing is fuelled by the near constant market shares of individual companies over the last six years. Signs of collusion are there especially on the zonal level with capacity utilization and production levels of companies in zones moving in tandem with each other and operating profit margins of almost all the companies being highly volatile. On the all India level, suspicion hovers above Ultratech Cement Ltd., ACC Ltd., India Cement Ltd, Shree Cement Ltd., and Madras Cements Ltd. While in the north zone, strong
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