Characteristics of the Various Market Structures Assignment

Characteristics of the Various Market Structures - Assignment Example Although the firms may be producing products of similar recipe, the branding may vary from firm to firm. Monopolistic competition comprise of many sellers and many buyers (Weigand & Rachman, 2010). The product is almost the same but the branding is different resulting to a fierce competition. Other examples include private schools and insurance brokers and hairdressers. The firms that deal with sell of vegetables and food are good examples of perfect competition even though they may change to oligopoly in situations where branding sets in. Prices may be stable in the number of firms’ current in the market structure. Goods may be differentiated or homogeneous. Firms in this type of structure may often be influenced by the behaviors of others. Firms have a mandate of achieving their goals by maximizing profits and minimizing loses. Production is usually increased until the marginal cost equals the marginal revenue. Output should be produced at a level that is considered maximum depending on whether the type of structure is monopolistic, monopoly, oligopoly and perfect competition. Pricing decisions tend to rely on analysis regarding marginal contributions to costs and revenue. Marginal profit appears positive when marginal revenue is more than marginal costs (Vaile,