Market Structures and Relating Pricing Strategies
Market Structures and Relating Pricing Strategies
Abstract
This paper analysis’s the four categories of the market structure; perfect competition; monopolistic competition, oligopoly and monopoly marketing structures. It will also provide pricing strategies as they are specifically related to each market structure. Each market structure possesses it own unique pricing structure that every business follows to achieve its maximum profit. Some market structures pricing strategies are simple and straightforward while others can be complex. This paper exams how each market structure functions in the business world and how businesses set their pricing strategy. The case study also provides a real world example of a company’s pricing strategy for a monopoly structure.
Market Structure controls the goods and set the price by which consumer will pay for a particular goods or service. The four main marketing structures are perfect competition, monopolistic competition, oligopoly and monopoly. The all possess the own unique characteristics as it plays a different role in the economy. But they are all dictated by the law of supply and demand. One of the main characteristics that all four market structure share is competition. Some market structures have little to no competition while other may have a large number of competitors. The type of market structure is determined mainly on the amount of competitors in that particular industry. Each unique characteristics of the four market structure allows them to be set apart from each other. The perfect competition refers to a market where neither the buyer nor the seller is able to manipulate the structure of the market. Should a seller decided to increase (decrease) its inventory, the increase (decrease) will not noticeably affect the market price. The process is the same for a buyer who increases (decrease) their demands the degree of change
Abstract
This paper analysis’s the four categories of the market structure; perfect competition; monopolistic competition, oligopoly and monopoly marketing structures. It will also provide pricing strategies as they are specifically related to each market structure. Each market structure possesses it own unique pricing structure that every business follows to achieve its maximum profit. Some market structures pricing strategies are simple and straightforward while others can be complex. This paper exams how each market structure functions in the business world and how businesses set their pricing strategy. The case study also provides a real world example of a company’s pricing strategy for a monopoly structure.
Market Structure controls the goods and set the price by which consumer will pay for a particular goods or service. The four main marketing structures are perfect competition, monopolistic competition, oligopoly and monopoly. The all possess the own unique characteristics as it plays a different role in the economy. But they are all dictated by the law of supply and demand. One of the main characteristics that all four market structure share is competition. Some market structures have little to no competition while other may have a large number of competitors. The type of market structure is determined mainly on the amount of competitors in that particular industry. Each unique characteristics of the four market structure allows them to be set apart from each other. The perfect competition refers to a market where neither the buyer nor the seller is able to manipulate the structure of the market. Should a seller decided to increase (decrease) its inventory, the increase (decrease) will not noticeably affect the market price. The process is the same for a buyer who increases (decrease) their demands the degree of change
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