Market Structures

In this article, we will explain the market structure based on the number of suppliers and buyers for goods and services. You will learn about the different types of market structures, the important features of each structure, and the differences between them. 

Market Structures Market Structures

Create learning materials about Market Structures with our free learning app!

  • Instand access to millions of learning materials
  • Flashcards, notes, mock-exams and more
  • Everything you need to ace your exams
Create a free account
Table of contents
    Frequently Asked Questions about Market Structures

    What is market structure?

    Market structure defines the set of characteristics that help us categorise firms depending on certain features of the market.

    How to classify market structures.

    Market structures can be classified on the basis of the following:

    1. Number of buyers and sellers

    2. Level of entry and exit

    3. Level of information

    4. Nature of product

    5. Price level

    How does a market structure affect the prices?

    The number of buyers and sellers which is the basis of market structure influences the price. The higher the number of buyers and sellers, the lower the price. The more monopoly power, the higher the price. 

    What is the market structure in business?

    The market structure in business can be any of the four major types depending on the level of competition, the number of buyers and sellers, the nature of the product, and the level of entry and exit.

    What are the four types of market structures?

    The four types of market structures are:

    1. Perfect competition

    2. Monopolistic competition

    3. Oligopoly

    4. Monopoly

    Test your knowledge with multiple choice flashcards

    Market factors that influence monopoly power include:

    What are the three main conclusions gathered from the kinked demand curve?

    What are the characteristics of an oligopolistic market?

    About StudySmarter

    StudySmarter is a globally recognized educational technology company, offering a holistic learning platform designed for students of all ages and educational levels. Our platform provides learning support for a wide range of subjects, including STEM, Social Sciences, and Languages and also helps students to successfully master various tests and exams worldwide, such as GCSE, A Level, SAT, ACT, Abitur, and more. We offer an extensive library of learning materials, including interactive flashcards, comprehensive textbook solutions, and detailed explanations. The cutting-edge technology and tools we provide help students create their own learning materials. StudySmarter’s content is not only expert-verified but also regularly updated to ensure accuracy and relevance.

    Learn more
    StudySmarter Editorial Team

    Team Market Structures Teachers

    • 9 minutes reading time
    • Checked by StudySmarter Editorial Team
    Save Explanation

    Study anywhere. Anytime.Across all devices.

    Sign-up for free

    Sign up to highlight and take notes. It’s 100% free.

    Join over 22 million students in learning with our StudySmarter App

    The first learning app that truly has everything you need to ace your exams in one place

    • Flashcards & Quizzes
    • AI Study Assistant
    • Study Planner
    • Mock-Exams
    • Smart Note-Taking
    Join over 22 million students in learning with our StudySmarter App