Competitive markets, monopolies, oligopolies as types of markets Essay

Competitive commercialises, monopolies, oligopolies as types of trades expressions - Essay ExampleThis means that the seller has a lot of authority and control over the grocery store conditions such as price and supply. Some of the characteristics of noncompetitive market place structure include little quantity or absence of substitute products, large barriers to market entry, little or no competition, while seller has a great authority over market conditions, prices be determined by the seller, insignificant residual exists between the industry and firm. Additionally, the demand snub for noncompetitive markets is downward sloping, which simply means the seller can sell less at a higher(prenominal) price, or vice versa (Nicholson, & Snyder, 2008, p. 491). Unlike in competitive markets, monopolistic markets have the upper hand in set upting market prices. Since the firms or the sellers have little to worry about competitors, they can set the prices to a higher place the f ringy costs. They can set the prices above the normal profits as would be in the representative of competitive markets. Additionally, the seller can cast supply, thereby determining the price by either selling more at a lower price or selling less at a higher price. The maximum possible price will be where marginal cost, marginal revenue, and demand curve intersect. Although monopolies can maximize profits in several ways, the getup is largely determined by marginal cost and marginal revenue. The seller will continue increasing the output, as long as marginal costs are lower than marginal revenue. The maximum profit will be realized when the difference between marginal revenue and marginal cost is maximum. Since the seller is the price determinant, it is possible to regulate the output such that the profit obtained is maximized when other market conditions are considered. Monopoly markets have many market entry barriers as compared... It is evidently clear from the discussion th at competitive markets are characterized by unlimited number of buyers and sellers, all occupation on the same or similar commodity in a manner that the prices of the commodity are largely determined by the market forces. Therefore, a single individual or a low-pitched fraction of the buyers or sellers has little or no impact upon the price. Once the prevailing market forces set the price, buyers or sellers have no option but to go with the offered prices. Monopoly type of market structure refers to a market whereby there is little or no competition on the offered commodity. This means that the seller has a lot of authority and control over the market conditions such as price and supply. Some of the characteristics of monopolistic market structure include little quantity or absence of substitute products, large barriers to market entry, little or no competition, while seller has a great authority over market conditions, prices are determined by the seller, insignificant difference exists between the industry and firm. Oligopoly is a market structure whereby few sellers dominate the market. Unlike in monopoly form of market structure, oligopoly players can hardly make fencesitter decisions since the other market players will react in response. Therefore, the decisions of one player are under the influence of the others. Few large firms characterize the market structure, each firm is appreciably large in comparison to the overall market, similar or close substitute products, and large barriers to entry.