Allegations Of Anti Competitive Behavior In Markets Economics Essay

Allegations Of Anti Competitive Behavior In Markets Economics Essay A market is a place  within  which suppliers and  demanders  of any product interact. This interaction determines what gets  caused  and  overwhelmed  via the  gesture  of the market price. All  business   organizations must have a  relevant  knowledge regarding the markets  within  which they operates. Before discussing the markets which are investigated by the various anti competitive authorities it is very important to discuss the markeet structure in which those markets falls. The fundamental thought of market structure is midpoint to both economics and marketing. Both disciplines are afraid with strategic decision making. In decision making examination, market design has a valued job through its consequences on the decision-making environment (Baumol, 1961; Yadav1995) Understanding the reasons and effects of focused industry framework remains to pose a formidable contest for industrial organizations markets in which firms can differentiate their commodities are notably complex, as each person firm’s commodity option affects it’s possesses profitability, and the extent of commodity differentiate impacts the intensity of competition for all market participation According to Moschandreas (2000) it is very difficult to define a market but  later  setting  perimeters  it is  straightforward  to define industry which includes all the firms operating in an  individual  market. In economics markets can be categorized according to the structure of the industry and industry structure is classified on the basis of market structure variables which determine the extent and characteristics of competition.  So different firms operate in different types of markets which is known as market structure. It includes various features like number of firms in the markets and types of product they are dealing with.The competitiveness of the market depends on the power of the individual firms to influence market price s. The long run profitability of firm is judged from their performance in their particular market. So we can say that market structure determines the behaviour of firms and which determines the performance of firms. According to Chrystal, K.A perfect competition ,monopoly, monopolistic competition, and oligopoly. Monopoly and perfect competition lie in the too extreme. In the monopoly industry contains only one firm, which can, therefore sets its price without concern about how competiting firms in the industry will react. Perfect competition is a market form where there are several firms competing within an industry. In this type of market structure, firms are price takers, free to enter the industry and produce identical products (Sloman & Sutcliffe, 2001). In the perfect competition market there are large numbers of buyers and sellers, selling homogeneous product, without having any market power means firms can’t influence the market price and output of product so the fir m in perfect competition is a price taker. There are no barriers regarding entry and exit of firms from perfect competition. The large number of firms and the homogeneity of product ensure that each product has a negligible effect on market price and output. Mobility of both sellers and buyers means that if a price difference were to open up it would be exploited immediately. Consequently the possibilities of difference prices prevailing in the same market can be ignored.( Chrystal, K.A & Lipsey, R.G 1997).