Abstract
The paper will define the main four market structures and show corporate examples for each structure. The models will illustrate pricing and non pricing strategies used by the various companies to maximize profits. This paper discuss the four market models, and examine how each market is different, the example of firms in market, the type of products /services they generate and how other firms can enter and exit their domain. This paper will also review the Economics for Managerial Decision Making simulation and discuss the evolution of the laptop industry in the simulation as it relates to the various market structures. The analysis will discuss pricing and other actions required to keep the industry profitable during market evolution within the different structures of market. In the conclusion we try to establish that key element of market economy is ‘the competition’ and enlighten the fact that strategy, cost cutting measures would position Quasar to maintain its market share in perfect competition to stabilize as a pioneer in building optical notebooks.
Introduction
Market structure simply stated describes the state of a market with respect to competition. A market system is any process enabling many buyers and sellers to buy and sell goods and services. In general, markets are grouped in to four structures such as monopoly, oligopoly, monopolistic, and pure competition (McConnell-Brue, 2004). According to Webster dictionary competition is defined as “the effort of two or more parties acting independently to secure the business of a third party by offering the most favorable terms.” A variety of competition types that are facing business and we will discuss about the definition of these terms and corporat ...