Essay about Business Structure Of A Business

817 Words Nov 18th, 2015 4 Pages
There is a clear understanding that society is full of competitive markets and the temptation to get more. Getting more can ultimately become a bigger issue than expected for some businesses. Owning a business is a gamble in various ways form financial dilemmas to staffing problems to even remaining functional. How a business structure their facilities and operate will allow them the chance to find out what actually works best for them as well as their customers.
According to N. Gregory Mankiw, competitive market is “a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker.” The structure of a market can be different depending on the features of competition within the firm. The perfect and competitive market has many producers and consumers. Therefore, it has no restriction on entry and exit. That is, there are perfect information, good property rights and perfect homogeneous goods that produce a system with no economic actors that can interfere with the pricing of goods. The producers are the price takers and are entitled to select how much to produce.
However, the producers cannot determine the price at which they should sell their goods or output. However, few firms are perfect and competitive. For instance, some markets may have many buyers and sellers and the difference in quality between the providers is that they can substitute the good very easily, and the products are simple in the sense that both buyers will…

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