Different market structures, impact of market forces, business and cultural environment, relevance of international trade, impact of global factors, impact of EU policies on UK businesses

TASK 3 AND TASK 4

3.1 Different market structures determining the output and pricing policies of businesses
Monopoly market
In this type of market, there is a single firm to produce single good and services.
There are no close substitutes to the product and the buyers rely on the single
producer.
Due to legal and technical restrictions, new firms are not able to enter the monopoly
market and there are no direct rivalries or competitors.
The single producer determines the output and price of the product or service as they
are price-maker.

OLIGOPOLY MARKET:
There are very few numbers of sellers and good amount of buyers in oligopoly
market.
Close substitutes are always present in the market although each company tries to
differentiate its product features with the rivalry.
The pricing and production policies depend upon competitors market strategies.
There is cut throat competition in the market, little change in the price of one firm
makes a noticeable impact on the price and output of the other firm.