Studying economics is a necessity for all students as it is in our daily use. Economics helps us to maintain our living while prioritising the main things in our life.
Students who have an interest in the respective field of Economic, choose this field as their specialisation throughout higher education. There are many activities that students have to perform throughout their education and it is difficult for the students to meet all the requirements of various activities at the same time. It has never been easier for the students to write effectively for economics acid demand a lot of interest and commitment towards the respective field of academics.
Activities provided to the students are highly beneficial for the best understanding of the concepts and to enhance the grades throughout the program. To understand the requirements of an economic assignment, students can approach online assignment writing services. This can help students to meet the standards of economic assignments and understand the guidelines provided by the instructors.
There are different structures of the market in economics. It is one of the most important and famous topics in economics that is provided to the students for essay writing. Let’s see and discuss each structure of the market in economics.
Pure Competition
In pure competition, there are a large number of competing organisations. They compete with each other over the market. A single firm cannot influence the marketing power, which results in maximum output as it cannot influence the market price. Demand and supply play an important role along with the market price set by the firms. One of the main advantages of pure competition is that each product is identical and there are easy entry and exit in this specific structure of the market.
Pure competition is also known as perfect competition. However, pure competition is rare to find in the real world as it is just a theory to look at the industries through different perspectives. Online shopping, the foreign exchange market, and agriculture are some of the examples of perfect competition.
Monopolistic Competition
Just like perfect competition, monopolistic competition is one of the market structures which involves a large number of small firms. The only difference between monopolistic and perfect competition is that in monopolistic competition the products are similar but differentiated. They focus on the lowest cost for production and charge higher prices within limits. The products in monopolistic competition are similar but just a small change in advertising defines the firm. Advertisement, location, price strategies, are some of the small changes that make differences among products.
Let’s just an example of monopolistic competition, just an example of hair salon and spas they have the same products but differentiated through brands and style. Producers are attracted when they see the profits and in monopolistic competition, it is easy to enter and exit just like in the perfect competition.
Oligopoly
The oligopoly is unlike pure and monopolistic competition structure of the market. This particular structure of the market involves a small number of large firms in the competition. So there is a Limited competition in the market. It is up to the competitors if the phone to work collectively or to compete against each other in order to change the prices as per their want to earn high profits. It is difficult to enter such a market as the entire resources are controlled by powerful companies. These resources are the raw material, patents, and other physical resources. However, if prices are too high in oligopoly, the customer will head towards a substitute of the product in the market.
In an oligopoly market, products can be similar or can be differentiated. Cable television, the auto industry, and air travels are some of the examples of an oligopoly market. Production, pricing, and profits are some of the factors that can change the relationship between sellers and buyers.
Pure Monopoly
In this specific market structure, there is only a single firm that controls the entire market. In a pure monopoly, a single firm is the sole producer of the product. In a pure monopoly, there is no substitute for the product in the market. As there are no alternatives to the product, the firm can charge the prices they want. In short, in a monopoly, they can decrease the output, increased prices, and can earn large profits.
There is no entry or exit in pure monopoly and there are some of the examples that can explain the specific structure market, which can include utility Store services, sports League, and many other things. It can take a lot of capital to complete against the Monopoly. Intel, Microsoft, DeBeers, diamonds, are some of the great examples to understand the pure monopoly market structure.
Conclusion:
There are four market structures that can help the entrepreneurs to act accordingly as per the requirement and needs of the product. The above mentioned four structures of the market can help students do to write an effective essay for all four factors of the market. Each structure has its own importance, advantages, and disadvantages which helps the firms from different perspectives. However, students can complete their economics assignment on the topic of economics market structures.