MARKET STRUCTURE
Market structure is defined as the organizational and other characteristics of a market. The economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market as the major characteristics. Market structure also mean that the number of firms in the market that produce identical goods and services. The market structure has a great influence on the behaviour of individuals firms in the market and will affect how firm price their product in the history. They are four basic market structures which are perfect competition, monopolistic competition, monopoly and oligopoly. In a perfect competition market structure several firm are present who all produce identical products …show more content…
Other competitors include Puma, Skechers, Anta, Li Ning, Crocs and many more. All of these brand also produce shoes and clothes and they produce their product over the world. They produce similar product as Nike but not identical or slightly different. Different between all the brand are input or material that use to produce the product or in other name factor of production for all the product. Nike have product differentiation from other company. Nike different from other because their use different materials or factor of production compare to other’s firms. Factor of production is the inputs that are used by a company to produce products and services. Inputs include land, labor, and capital. Land resources are gifts of nature or natural resources from the natural environment. Some resources are flow resources such as sun and wind. Others are renewable and some are “stocks.” In some cases a resource may be considered “exhaustible”. Labor is human effort (physical or mental) used to produce goods and services. Capital is inputs that are good that were produced to be used for further production of goods and services. For Nike they attempt to use land resources that environmentally …show more content…
Nike also defined as monopolistic competition because the product is a substitute good and they control the price. As mention before monopolistic competition means a market structure in which there are many firms selling products that are similar but are not identical. Monopolistic competition is also the market that have some features of competition and some features of monopoly. In monopolistically competitive market, each firm has a monopoly over the product they produce, but many other firms produce similar products that compete for the same group of customers. Monopolistic competition and oligopoly both have some feature of competition and some feature of monopoly. But oligopoly and monopolistic competition is quite different. Monopolistic competition have many sellers, while oligopoly has few sellers. A monopolistically competitive market departs from the perfectly competitive ideal because each of sellers offers somewhat different products (Mankiw, 2008). There are three condition that can describe monopolistic, which are have many sellers, product differentiation and free entry. As Nike has all the three condition they can be defined as the monopolistic competition. Nike has many competitors so these prove that Nike has fulfil the first condition. For the second condition, Nike has
Market structure is defined as the organizational and other characteristics of a market. The economist have focused on in describing the market structures are the nature of competition and the mode of pricing in that market as the major characteristics. Market structure also mean that the number of firms in the market that produce identical goods and services. The market structure has a great influence on the behaviour of individuals firms in the market and will affect how firm price their product in the history. They are four basic market structures which are perfect competition, monopolistic competition, monopoly and oligopoly. In a perfect competition market structure several firm are present who all produce identical products …show more content…
Other competitors include Puma, Skechers, Anta, Li Ning, Crocs and many more. All of these brand also produce shoes and clothes and they produce their product over the world. They produce similar product as Nike but not identical or slightly different. Different between all the brand are input or material that use to produce the product or in other name factor of production for all the product. Nike have product differentiation from other company. Nike different from other because their use different materials or factor of production compare to other’s firms. Factor of production is the inputs that are used by a company to produce products and services. Inputs include land, labor, and capital. Land resources are gifts of nature or natural resources from the natural environment. Some resources are flow resources such as sun and wind. Others are renewable and some are “stocks.” In some cases a resource may be considered “exhaustible”. Labor is human effort (physical or mental) used to produce goods and services. Capital is inputs that are good that were produced to be used for further production of goods and services. For Nike they attempt to use land resources that environmentally …show more content…
Nike also defined as monopolistic competition because the product is a substitute good and they control the price. As mention before monopolistic competition means a market structure in which there are many firms selling products that are similar but are not identical. Monopolistic competition is also the market that have some features of competition and some features of monopoly. In monopolistically competitive market, each firm has a monopoly over the product they produce, but many other firms produce similar products that compete for the same group of customers. Monopolistic competition and oligopoly both have some feature of competition and some feature of monopoly. But oligopoly and monopolistic competition is quite different. Monopolistic competition have many sellers, while oligopoly has few sellers. A monopolistically competitive market departs from the perfectly competitive ideal because each of sellers offers somewhat different products (Mankiw, 2008). There are three condition that can describe monopolistic, which are have many sellers, product differentiation and free entry. As Nike has all the three condition they can be defined as the monopolistic competition. Nike has many competitors so these prove that Nike has fulfil the first condition. For the second condition, Nike has