What are the types of market structure?

The market structure has the following types:

Market structure-refers to the internal relations and characteristics of various elements in a market, including market suppliers, demanders, the relationship between suppliers and demanders, and the relationship between existing suppliers and demanders in the market and those entering the market.

Four common market types are perfect competition, monopoly, monopolistic competition and oligopoly. The structure of a market depends on the number of buyers and sellers and the size of product differences. What kind of market structure an industry belongs to is mainly based on the following three aspects:

First, the number of producers or enterprises in the industry. If there is only one enterprise in this industry, it can be divided into a completely monopolized market; If there are only a few large enterprises, it is an oligopoly market; If there are a large number of enterprises, they can be divided into perfect competitive markets or monopoly competitive markets. The more enterprises in an industry, the fiercer the competition; On the contrary, the fewer enterprises in an industry, the higher the degree of monopoly.

Second, the degree of product difference between producers in this industry. This is the main difference between monopoly competitive market and perfect competitive market.

Third, the size of the barriers to entry. The so-called entry barrier refers to the resistance that a new enterprise encounters when entering a certain industry, and it can also be said that it is the difficulty of resource flow. The smaller the barriers to entry, the higher the degree of competition. On the contrary, the greater the barriers to entry of an industry, the higher its monopoly.

According to the different characteristics of these three factors, the market can be divided into four types: perfect competition market, monopoly competition market, oligopoly market and complete monopoly market.

Among the four market structures, the perfect competition market is the most competitive, the complete monopoly market does not exist, and the monopoly competition and oligopoly are competitive but insufficient.