There are four different market structures that determine profitability.
Perfect competition describes a market structure, where a large number of small firms compete against every different. on this state of affairs, a single company does not have any significant market power.
A Monopolistic competition also refers to a market structure, where a large number of small firms compete against every other. but, unlike in best competition, the firms in monopolistic competition sell comparable but barely differentiated products. That gives them a certain degree of market power, which allows them to charge better prices within a specific range.
An oligopoly describes a market structure this is dominated by only a small quantity of companies. That results in a state of limited opposition. The firms can both compete in opposition to every other or collaborate. by means of doing so, they could use their collective market power to drive up prices and earn more earnings.
A monopoly refers to a market shape where a single firm controls the entire market. In this state of affairs, the firm has the best level of marketplace strength, as consumers do not have any alternatives. As a result, monopolies often reduce output to increase fees and earn more profit.
Learn more about the collective market here:
https://brainly.com/question/25754149
#SPJ4
