Different Market Structures and Impact of Market Forces on Organizations

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.

Perfect competition market
Under this market, various business organizations are
working within same industry with immense
competition. From this, it is evaluated that there exist
buyers and sellers who do not have any options of
entry and exits in the market.