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Market Structures are determined by the behavior, density and size of buyers and sellers in a market. We have multiple buyers and sellers in a marketplace which leads to competition and influence the supply and demand of any commodity or product. There are different types of market structures like in some industries there are a limited suppliers for particular goods or service. So they have huge control and influence over the prices and supply. The buyer has no choice but to accept whatever quality they are offered. Very similar to this condition is Monopoly, in this market structure there is only one seller or producer. Entry into this market may be restricted due to patents, government regulation or the sheer size of investment required to start producing, it also can be related to the technology which the producer posses. There other form of market structure is oligopoly. In this too there are limited suppliers and entry barriers are steep. The price war cannot be sustained in this type of market structure as the products are almost identical. The cola giants Pepsi and Coco cola market structure can be considered a near example of oligopoly. These are examples of extreme market structures. There is another form of market in which competition is perfect. Here there are large number of buyers and sellers. There are a variety of products and substitutes available. Entry and exit barriers are low or absent. Prices are governed by supply and demand.
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