Market structure and strategic behavior
There are different market structures in which firms operate including monopoly, monopolistic, perfect competition and oligopolies. The structures play a fundamental role in determining whether a firm is a price taker or a price maker in the industry. In oligopoly market structures, a small number of large firms dominate the industry thus has the power to control factors like price, quality and supply of products. The companies in an oligopoly market sell differentiated or identical products. It is difficult for firms willing to enter into the oligopoly market to succeed due to the various barriers to entry such as Continue reading...