Importance Of Market Structure And The Role Of Government

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Market Structure and the Role of Government

1. Market structures are unique in their own sense of how they react and what effects they will have on the industry. For instance, having market structure in an industry deals with products and being aware of how many firms are competing for this particular item in the industry. This is where oligopoly, perfect competition, monopoly and monopolistic competition come in to play. They have a uniqueness about them that draws competing firms to want to be involved. Oligopoly is considered to be structured in healthcare market because it deals with both sides (buyers and seller) and is few in number (p 487). Due to their competiveness there level of production is low depending on whether or not they
Product differentiation can affect the demand for a product in many ways it distinguishes a product or service to make it more attractive to a specific market and caters to people of specific bracket. Differentiation of a product is done in order to show the uniqueness of a particular product making it more attractive with a sense of value to a firm. It is also one of the defining traits of a monopolistic competitive market showing that there is not a significant amount of competition. By doing so it reduces direct competition because of its differences it makes it less attractive for market competition (Boundless, 2015). It also improves the availability for individuals rather that for a particular market. Because of its uniqueness one is able to draw more from a single dweller than from a particular
M. (n.d.). Eyeing the Four Basic Market Structures. Retrieved January 13, 2016, from http://www.dummies.com/how-to/content/eyeing-the-four-basic-market-structures.html

Hicks, L. (2012). Economics of health and medical care (6th ed.). Burlington, MA: Jones & Bartlett Learning

Boundless “Long Run Outcome of Monopolistic Competition.” Boundless Economics. Boundless, 21 Jul. 2015. Retrieved 13 Jan. 2016 from https://www.boundless.com/economics/textbooks/boundless-economics-textbook/monopolistic-competition-12/monopolistic-competition-75/long-run-outcome-of-monopolistic-competition-284-12381/

Boundless. “Product Differentiation.” Boundless Economics. Boundless, 21 Jul. 2015. Retrieved 13 Jan. 2016 from https://www.boundless.com/economics/textbooks/boundless-economics-textbook/monopolistic-competition-12/monopolistic-competition-75/product-differentiation-281-12378/

Riley, G. (n.d.). Government Intervention in Markets | Economics. Retrieved January 13, 2016, from

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