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Essay text:
Economists divide the market into four distinct market structures: pure competition, monopoly, oligopoly and monopolistic competition. This paper will differentiate among the various market structures, while identifying pricing and non-pricing strategies within each market structure.
Pure Competition
According to McConnell & Brue, “pure competition involves a very large number of firms producing a standardized product” (McConnell & Brue, 2004). Within a pure competition, new firms may very easily enter and exit the industry. Pure competition is considered rare and its market model is highly pertinent...
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