The environment in which a company operates is referred to as a market structure. There are four primary structures: perfect competition; monopolistic competition; oligopoly; and, monopoly. A perfectly competitive firm has no market power to influence pricing while a monopoly/monopolist has market power because it can set prices and in turn increase profits. The other two structures vary in degrees of market power based on the combined characteristics of both competitive and monopolistic structures.
Select one of the major market structures (noted above), and then identify two existing companies that you believe operate within this structure and explain why. The companies should be from different industries (i.e., sell wholly different products).
Explanation & Answer:
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