A Market is a place where agents commonly known as sellers and buyers converge to

interact with one another, with the aim of determining the price(s) of goods and or
services that are up for sale or with the purpose of transactions. According to Tucker
(2017, p.173), market structures can be defined as, A classification system for the key
traits of a market, including the number of firms, the similarity of the products they sell,
and the ease of entry into and exit from the market. The market structure is important
because it affects market outcomes through its impact on the motivations, opportunities,
and decisions of economic actors participating in the market (Fischer, 1997). The
competitiveness of the market indicates the extent to which individual firm has the power
to influence market price or the terms of which its product is sold (Nguyen & Kira,
2014). The purpose of this essay is to discuss the characteristics of the three main market
structure types, namely: perfect competition, monopoly, and oligopoly and additionally
look into how they can affect a particular industry in a market. This is because these types
have a way of impacting the choice and prices of the markets in which they operate. The
essay will begin by stating, defining and discussing the characteristics of the types of
market structure with an example for each and then move on to discuss the market
structure of a particular industry in a country of choice and how it impacts the choice and
price of that country.

A market structure can mostly be determined by how strenuous it is to come into a

particular market. This difficulty could arise from issues such as government regulations,
control of essential resources and or inputs, economies of scale, technological superiority,
or system externalities. Also, a market structure can be established on how uncomplicated
it is to distinguish between goods and services. These determinants have led to the
classification of market structures into three main parts, which are: perfect competition,
monopoly, and oligopoly.