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In: Economics

should a country develop a new market structure?

should a country develop a new market structure?

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Expert Solution

The market structure refers to the number of firms in the market, their market shares, and other characteristics that affect the level of competition in the market. The market structure may shift due to perceived and/or actual changes in the product itself. In purpose-defined markets, the product substitutability of customer perceptions and related market structure may shift rapidly. There is an impact of regulations, technology innovation and behavior changes on the market and its participants such as entrepreneurship. The entrepreneur may develop a new market structures that meet their requirements, even if the resources needed to create the requisite market structure is not within the current control of the entrepreneur. With the changes in market structure the methods of communication, business models, security prices, and investment returns are all impacted. This may result to the replacement of the pre-existing market structures with a new market structures (competition)

Rahul Sunny answered 2 years ago
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