Market structure describes the organization and characteristics of a market, especially how firms compete, set prices, and produce goods or services.
It explains how a market works and how much power firms have.
Market structure and firm behavior
Market structure affects:
- Pricing strategies
- Output decisions
- Innovation and R&D
- Efficiency and consumer welfare
Key takeaway
Market structure determines competition intensity, pricing power, and economic efficiency.
Understanding market structure helps businesses, investors, and policymakers make better decisions.
THE ETERNAL SOVEREIGN 