The meaning of market structure and the factors determining it.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

1. A doctor quits his job, which pays $77,000 per annum, to open a non-governmental organization (NGO) to serve the needs of orphans. His annual expenses for the NGO amounts to $62,700 for food and daily supplies, $9,400 for maintenance, and $1,800 for books. What is his opportunity cost of opening the NGO? (Show working) 2. During the COVID-19 pandemic, hospitals worldwide faced severe resource constraints, including: a. Limited ICU beds b. Shortage of ventilators c. Insufficient doctors and nurses d. Lack of vaccines in early 2021 Governments and hospitals had to make critical decisions about who receives treatment first and how to allocate limited resources efficiently. In no more than 150 words and using core economic concepts of scarcity, choice and opportunity cost, how would you help your government make these critical decisions?

What is the argument about necessary evil?

What are the consequences of declining houses prices?

Answer 2

Question

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Answer 6

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.

Economics Concept Introduction

Introduction: Not Required.

Answer 7

Chapter 8, Problem 1.1P

To determine

The meaning of market structure and the factors determining it.

Answer 8

Expert Solution & Answer

Explanation of Solution

The term market structure refers to a system in which all the firms and customers in the market deals with each other and engage in some economic activities. All the firms sell their products in the market on a particular price. The products can be homogenous or heterogeneous in nature. The consumers buy these goods from the sellers in the market.

The factors which determine the market structure of a particular industry are as follows:

(a) Number of firms in the industry- In some market, the number of firms can be very large and in some market it can be very limited or in some market there is only one firm operating in the market.

(b) Number of buyers in the industry- Just like the number of firms in the industry can vary; the number of buyers can also vary. In some markets the numbers of buyers are huge and in some markets the buyers are as low as only one buyer.

(c) Type of products- There can be different types of products in the market; they can be homogenous or heterogeneous in nature.

(d) Restrictions on the entry and exit of the firms- Some market structure allows free entry and exit of firms while other have no or limited entry and exit of firms.

(e) Level of competition- The different market structure has different degrees of competition. In some market structure, there is high degree of competition while other has low or zero level of competition.