In economics, market structure describes the state of a market with respect to competition. The major market forms are: Perfect competition , in which the market consists of a very large number of firms producing a homogeneous product. Monopolistic competition , also called competitive market, where there are a large number of independent firms which have a very small proportion of the market share. Oligopoly , in which a market is dominated by a small number of firms which own more than 40% of the market share. Oligopsony , a market dominated by many sellers and a few buyers. Monopoly , where there is only one provider of a product or service. Natural monopoly , a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. Monopsony , when there is only one buyer in a market. The imperfectly competitive structure is quite identical to the realistic market conditions where some monopolistic competitors, monopolists, oligopolists, and duopolists exist and
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