Market structures describes what makes up an economic environment. How many firms are competing? How easy is it to enter or exit the industries? How large or small are these firms? Is it a technologically advance industry? According to the textbook there are several different types of market structures that
can appear. An Oligopoly is an environment where there are only a few, but rather large, firms in a single industry (Baye & Prince, Basic Oligopoly Models 2021). An example of this can be seen with media outlets in the US where there is Comcast, Viacom, Fox, etc. which are some of the larger conglomerates
that often buy out or create new, smaller channels. Entry costs are high so new entrants are not often seen. The profits of one company takes away the profits of another company so competition can be fierce. A monopoly on the other hand is when there is a single producer of a good/service for an industry (Baye & Prince, The Nature of Industry 2021). This scenario has become more in recent times as many governments at this point in time have set up policies in order to prevent this type of scenario from happening but it does occasionally still happen, especially in the pharmaceutical industry where patents plays
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