On one extreme of the market structure range, where there are many enterprises, is perfect competition. In this context, the word "many" has a specific meaning. Each company is so small in relation to the market in a completely competitive industry that it has no impact on the product's pricing. Every company that is totally competitive is a price taker. Numerous businesses therefore imply that each business is so little as to be a price taker.
The other end of the market structure spectrum, where there is only one firm, is called a monopoly. Monopolies possess monopoly power, or the capacity to alter the product's price. Market power, another name for monopoly power, is quantified by the Lerner Index.
Market structure characterized by a differentiated product and flexibility of entry and exit is known as monopolistic competition.
Monopolistic Competitive enterprises have two traits: one similar to a monopoly (a differentiated product gives it market strength) and the other to a competitive firm (freedom of entry and exit). A walk to the grocery shop reveals a sizable number of diverse products, such as toothpaste, laundry soap, morning cereal, and so on. This type of market structure is typical in market-based economies.
To learn more about Monopolistic from the given link.
brainly.com/question/25717627
#SPJ4
