* In a monopoly market the prices are most of the times stable. This happens because there is only one firm involved in the market that sets the prices if and when it feels like. In other types of market structures prices are not stable and tend to be elastic as a result of the competition that exists but this isn’t the case in a monopoly market as there is little or no competition at all. 2. Source of revenue for the government
Four types of market structures - YouTube
Market structure can be said to be the classification or composition of the different types of market as described from their unique characteristics of how they choose to allocate prices of commodity in the market. The different types of market structure can be grouped majorly into two main categories the perfect and the imperfect market. Under the perfect market structure we have the perfect competitive market. Under the imperfect market we have the , oligopoly, monopolistic competition and other special categories based on the number of buyers. There are different examples of the different types of market structure based on the special characteristics’ possessed by each type of market structure.
The different types of market structure are; the monopolistic competition also referred to as the competitive market. The oligopoly market (called a duopoly when only two firms exist in the market), a monopsony (there exist only one buyer), the monopoly structure and the perfect competitive market. The types of market structures can be grouped into the perfectly competitive structure and the imperfectly competitive market structure. The imperfectly competitive market structures are the oligopoly, duopoly, monopoly and the monopolistic competition.