Duopoly and Monopolistic Competition Market Structures - Assignment Example

nbsp; The conventional economic analysis identifies four fundamental types of market structures namely monopoly, monopolistic competition, perfect competition, and oligopoly.... nbsp; The conventional economic analysis identifies four fundamental types of market structures namely monopoly, monopolistic competition, perfect competition, and oligopoly.... … The paper "Monopoly, monopolistic competition, Oligopoly, and Pure Competition" is a great example of a case study on macro and microeconomics....

market structures are very important in influencing the behavior of firms, their customers, and the performance of the market.... market structures are very important in influencing the behavior of firms, their customers, and the performance of the market.... When these features are considered two market structures result.... The imperfect competition comprises the monopolistic competition, oligopoly, duopoly, and monopoly (McManus, 2007)....

There are four major market structures that include perfect competition, monopolistic competition, and oligopoly, and finally the monopoly market structure.... The perfect competition market is one that is comprised of many buyers and sellers who trade similar goods.... The monopolistic competition is a market structure that involves many buyers and sellers.... This is because they control how we spend, prices of goods as well as controlling entry and exit into the market....

… The paper 'monopolistic competition in the Market " is a good example of marketing coursework.... The paper 'monopolistic competition in the Market " is a good example of marketing coursework.... A monopolistic competition does arise when either firm produces and offer products or services which are similar and not substitutable.... monopolistic competition in the market can be characterized by their product differentiation....

These levels occur due to the following factors such as search cost, the confidence of consumers with a market, and interest rates.... An increase in interest rates in times of recession causes critical utility levels to rise and this reduces the number of customers in the market and reduces the elasticity of demand Vind, K.... When new customers dominate the market, there is a high elasticity of demand.... Firms can maximize current profits once they exploit customers to increase their market share due to future expectations....

market structures determine the business activities that competing companies operate within.... It is apparent that the price wars are a result of the prevailing market structures.... Product differentiation makes the main players in such market structures strive to substitute their competitors' products.... It is important to note that monopolistic competition as seen in the case of the two companies is most common for large companies....

They also incorporate proper adaptation to the existing market environment, such as gaining the monopoly of the concerned market, placing themselves strategically in the monopolistic market, acquiring competitive advantages in the market among other strategies.... The firms also adopt various strategies depending on the market in which they are operating, such as price discrimination in a monopolistic market, entering into a collusive oligopoly, and the imposition of the market entry barriers, all aimed at increasing the individual firm ability to maximize profit....