In: Economics
Which of the following is a relatively direct determinant of market structure?
Group of answer choices
economies of scale
the possible influence of medium-sized firms
the possible influence of the smallest firms
the influence of small firms
The answer is "Economies of scale"
Market structure is a system where buyers and sellers interact with each other and degree of competition and product offereing in the market prevails. For example perfect competition, oligopoly market , monopolistic competition market structure etc
Various determinants of Market structure are - No of buyers and sellers, Government, Economies of scale, Nature of Product, Factors of production, Entry Bariers etc