How Market Structures Determine the Pricing and Output of Businesses
There are several different market structures in which organisations can operate. The type of structure will influence a company’s behaviour and the level of profits it can generate. The structure of a market refers to the number of businesses in a market, their market shares and other features which affect the level of competition in the market. Structures are classified in term of the presence or absence of competition. When there is no competition, the market is said to be concentrated. A scale from perfect competition to monopoly can be found below.
A perfectly competitive market is a market where competition is at its …show more content…
How Business and Cultural Environments Shape the Behaviour of Tesco
Tesco being the biggest retailor in the UK and the third biggest in the world means it can easily acquire or drive competition out of the market and get huge economies of scale. Economy of scale is when the average cost of production is reduced due to the increase in total output. Tesco has a very large scale business