The Four Marketing Structures

Decent Essays

There are many key structures to marketing. These marketing structures are used by many major corporations and at times are taken advantage. I will be discussing four of these market structures, which are perfect competition, monopolistic competition, oligopoly, and monopoly. Understanding these marketing structures and making it work for a company to grow also produce for their customers.
Perfect competition out of the four marketing structures is generally the best for equal customer and supplier relationships. Perfect competitive market speaking in a hypothetical market is where completion is at its greatest possible level. For a society and for consumers the best possible outcomes could be produced. Perfect completion is a structure …show more content…

The firm is better off by producing, and not shutting down. When the market price is higher than the minimum average value cost, minimum revenue and minimum cost should be compared to find out the optimal level of output.The entry and exit are the only long run adjustments to consider. The firms in this industry have identical cost curves. The industry is in a constant cost to the scales. In long run, if economic profits are earned, firms enter the industry, which increases the market supply, causing the product price to go down. Until zero economic profits are earned, then the supply will be steady. If losses are incurred in the short run, firms will leave the industry, which decreases the market supply, causing the product price to rise until losses disappear.
Monopolistic you can say “in reality, the closest to perfect competition is monopolistic competition where part of productive and allocative inefficiency is traded for variety and product differentiation” (Papatheodorou, 2006, pg.224). In a monopolistic competition is firm where a market situation with a relatively large number of sellers offering similar but not identical products. Certain examples of monopolistic competition are fast food companies. Another example of monopolistic competition is clothing stores. For a lot of firms each has a small percentage of the total market.Differentiated products are a variety of the product makes monopolistic

Get Access
Get Access