A market is a place
where buyers and sellers meet and interact. In today’s internet era, buyers and
sellers don’t meet necessarily, but they interact and and perform their
desired roles.
Market structure is
best defined as the organisational and other characteristics of a market. There
are some characteristics which affect the nature of competition and pricing.
The most important
features of market structure are:
- The number of firms.
- The market share of the largest
firms
- The nature of costs
- The degree to which the industry
is integrated
- The extent of product
differentiation
- The structure of buyers in the
industry
Summary of market
structures
