What Model Of Market Structure - 1455 Words

Business in any city are challenging commodities that produce gain for the population. This city growth is well developed and incumbent by the market structure it abide by. The wisdom of crowds is based on the assumption that valuable knowledge in social systems frequently exists only as dispersed opinions, and that aggregating dispersed information in the right way can produce accurate predictions. A prediction market provides a vivid illustration of the power of the wisdom of crowds. (Qiu, L., Rui, H., Whinston, A. B., 2014) This outline will break down the various market structures and will clarify all questions pertaining to the business in the city. The business will have to determine what model of market structure they will decide†¦show more content†¦These business sell the most by the demand of the consumer, this allows the easiest profit for a short run. Oligopoly means that an industry is dominated by a small number of sellers with market power. They can limit and discount competition. A good example are the cell phone companies such as Verizon or Sprint. They are their own competition and the government only regulates them but does not intervene with their sales practices. Monopoly markets used to be the way of the past. Companies had only one provider who offers a good or a service. Monopolies have no one to compete against nor did it allow others to get in the competition race with its product. As a monopoly the company can set price, and who to sell it to. It does not allow others to emulate what it sells. The monopolies don’t have competitors so they mostly maintain their customers. The National Football League is somewhat an example. They have exclusive rights to sell goods, they have no competition and most of the products sold are solemnly offered by or through them. If any other business uses their logo they must pay a fee. There is an Army base in Fort Lee Virginia. Although it is believed to belong to the U.S government, the agencies departments and firms that well work within it are structured as markets which provide for the city. It belong to a monopoly but it can also be considered to operate as an oligopoly. Some of the departments available are the AFFS Exchange, The military clothing and sales,