The Main Categories of Market Structures Essay -- Economy Economics U.

The Main Categories of Market Structures Recent industry analyses typically have strong relation with economic theories. There is a theory, belongs to microeconomics, divides industries into categories according t the degree of competition that exists between the firms within the industry, i.e. the theory of Alternative Market Structures. This essay based on three questions divides into 3 parts to explain and evaluate the questions. This essay (PART A) outlines the main categories of market structures, and shows the theoretical features of two of them, i.e. Perfect Competition and Oligopoly. This essay (PART B) evaluates upon the most relevant structure in regard to the UK supermarket industry. This essay (PART C) shows the implications for the UK supermarket industry of the Morrison to take over Safeway. Additionally, in this essay, the spread conclusions of three parts are in their finalities that would be instead of the conclusion in the end of the whole essay. PART A Markets can be described in relation to their different levels of competitiveness. The different market structures are perfect competition, monopoly, oligopoly and monopolistic. For an overview of each structure's comparative characteristics. In this essay, it analyzes the two of them: Perfect Competition and Oligopoly. Perfect Competition is the most competitive kind of market structure. It is considered as an ideal form of economic organization for providing goods and services to consumers as efficiently as possible. Its characteristics are classified as follows: 1. There are many firms in the industry, thus an individual firm's contribution to total industry supply is so small that whether... ...ucture by the acquisition, that means the market will be made even harder for new shops, especially the small firms who may not have abilities to compete, offering a new shopping experience to enter the market. Because of the barriers, it causes some limitation on the customer choices. As above mentioned, the Competition CommissionÂ’s decision of acquisition by Morrisons of Safeway motivates the UK supermarket industry to be more monopolistic while maintaining the scope of competitiveness. Of course, there are a few potential problems that might express in next few years, when the competition is gradually reducing and balancing. --------------------------------------------------------------------- Works Cited [1] Source by Sloman & Sutcliffe, Economics for Business, 1998 [2] Source by IDC data, 2003 [3] Source by Competition Commission, 2004 The Main Categories of Market Structures Essay -- Economy Economics U. The Main Categories of Market Structures Recent industry analyses typically have strong relation with economic theories. There is a theory, belongs to microeconomics, divides industries into categories according t the degree of competition that exists between the firms within the industry, i.e. the theory of Alternative Market Structures. This essay based on three questions divides into 3 parts to explain and evaluate the questions. This essay (PART A) outlines the main categories of market structures, and shows the theoretical features of two of them, i.e. Perfect Competition and Oligopoly. This essay (PART B) evaluates upon the most relevant structure in regard to the UK supermarket industry. This essay (PART C) shows the implications for the UK supermarket industry of the Morrison to take over Safeway. Additionally, in this essay, the spread conclusions of three parts are in their finalities that would be instead of the conclusion in the end of the whole essay. PART A Markets can be described in relation to their different levels of competitiveness. The different market structures are perfect competition, monopoly, oligopoly and monopolistic. For an overview of each structure's comparative characteristics. In this essay, it analyzes the two of them: Perfect Competition and Oligopoly. Perfect Competition is the most competitive kind of market structure. It is considered as an ideal form of economic organization for providing goods and services to consumers as efficiently as possible. Its characteristics are classified as follows: 1. There are many firms in the industry, thus an individual firm's contribution to total industry supply is so small that whether... ...ucture by the acquisition, that means the market will be made even harder for new shops, especially the small firms who may not have abilities to compete, offering a new shopping experience to enter the market. Because of the barriers, it causes some limitation on the customer choices. As above mentioned, the Competition CommissionÂ’s decision of acquisition by Morrisons of Safeway motivates the UK supermarket industry to be more monopolistic while maintaining the scope of competitiveness. Of course, there are a few potential problems that might express in next few years, when the competition is gradually reducing and balancing. --------------------------------------------------------------------- Works Cited [1] Source by Sloman & Sutcliffe, Economics for Business, 1998 [2] Source by IDC data, 2003 [3] Source by Competition Commission, 2004