key term - Market structure

Definition

Market structure describes the competitive environment in which businesses operate, including the number of firms, product differentiation, and ease of entry and exit from the market. It influences pricing, production, and strategic planning within an industry.

Related terms

Monopoly: A market structure characterized by a single seller that controls the entire market supply of a product or service, with no close substitutes.

Oligopoly:

A market structure where a few large firms dominate the industry, often leading to collaborative behaviors that influence prices and market output.

Perfect Competition:

A theoretical market structure featuring many small firms selling identical products, with no single firm able to influence market price due to its size