Market structure Essay

Document Type:Article Review

Subject Area:Construction

Document 1

Industries aim at maximizing their profits and minimizing the costs incurred while producing goods and services (Hong, 35). This paper will discuss the different types of market structures and then categorizes various industries in to their respective type of market. There are for classification of markets which are perfect competition, monopoly, monopolistic competition and the oligopoly market. Perfect competition market involves many buyers and sellers, similar products in the market, firms are free to enter and leave the market, and there are no interferences from the markets and firms focus on generating profits. Both the buyer and sellers of the perfect competition market have knowledge of the market. Firms in in this market make supernormal profits in the short run though this may not take long due to free entry and exit.

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