Market is an organized structure, which includes buyers and sellers, producers of goods (services) and their consumers.Their interaction leads to the establishment of market prices.
structure of the market - is its most important features, which include: the number of firms and their size, the degree of difference or similarity of the goods, ease of entry to a particular market or exit from, the availability of information.The ability to influence the formation and the price level depends on the structure of the market.
market structure exists in four forms:
- perfect competition.At the same time as there are a large number of small firms with homogeneous products.Entry and exit from the industry is not difficult, there is equal access to any information.The price set by the market and the organization's role in its formation is low.The competitive structure of the market is the most developed, as supported by the state.There are several forms of functional competition, species and the subject of competition.
- monopoly.There is one company producing unique products.Access to information is partially restricted market entry of other organizations is practically not possible.With this structure, the organization will set prices that are higher than would be under perfect competition.The State shall endeavor to carry out anti-monopoly policy, to create competition in the sale of goods and rendering of services.Monopolies exist in the following forms: closed, open and natural.The first is protected by legal restrictions on competition.The second has no special protection.When a third of the company long-term average costs are minimal, if it serves the entire market.
- monopolistic competition.Such a market structure is in the form of many small firms.The products are mixed.Entry and exit from the industry is not hampered, and access to information is partially restricted.
- oligopoly.The activity provides a small number of large firms with non-uniform or homogeneous products.There may be difficulties in the exit of the company from the industry, access to information is partially restricted.Usually, such a market structure at the technically complex industries.For example, steel, automotive, aircraft, chemicals, electronics.
Number of firms such a structure operating in the market are few and they produce most of the products.Significant cost savings provided by the large size of the company, which has a significant advantage over smaller firms.Competition in such industries almost impossible because of the high cost of equipment and the limited capacity of the market.
market has its own infrastructure.Under the infrastructure market means a series of government and commercial enterprises and institutions that ensure the functioning of market relations.
existing infrastructure of the labor market, commodity and financial markets.
Depending on the social division of labor market can be local, national and international.By type of perfect and imperfect competition.There are many other classifications.
The main elements of market infrastructure - a network of trade, customs and tax systems, banks and stock exchanges.
functioning of the market can not take place without advertising, advisory and informatorskih services, audit and control institutions.
Market Infrastructure is to facilitate the implementation of barter transactions, legal and economic control over them, increase their efficiency and effectiveness, provide informational support.Depending on the type and form of the market and there is a specific configuration of the infrastructure.
