Study Notes

Market Structures and the Degree of Competition

Level:
AS, A-Level
Board:
AQA, Edexcel, OCR, IB

Last updated 22 Mar 2021

Very few, if any, businesses operate without facing competition. It is not enough to understand what customers value. A business has to be able to deliver customer value better than the competition.

The ability to do this is heavily influenced by the structure of the market in which a business operates. The more competitive a market is – the harder the task becomes.

In economics, there are four main categories of market structure:

These four categories can be summarised as follows:

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