Major Market Structures

In the early stages of entrepreneurship, there are many factors to consider. If you want a specific lifestyle, one of the main factors to consider is which market you want to enter. There are four major market structures, complete competition, monopolistic competition, oligopoly and monopoly. All of these markets are positive and negative, including but not limited to entry barriers, the number of sellers entering a particular market, and the pressure to engage in business while paying attention to product pricing It has attributes.

The main factors determining the market structure are the number of sellers in the market, product differentiation and barriers to entry and withdrawal. Perfect competition and monopolistic market structure are considered to be extreme market structures (Kwasnicki, 2000) compared with other competitions such as monopolistic competition and monopolistic competition. In perfect competition, the number of sellers is compared with monopolists, monopolists are composed of a single seller. One of the main factors distinguishing the two structures is the entrance and exit barrier. With perfect competition, there is no hindrance to entering and leaving, it is easy to quit by entering the business. That is, one or more companies can enter the company only if they know the opportunity to make a substantial profit at a particular company. However, for monopolist enterprises, barriers to entry and entry that hamper entry of other companies are high. Disability is like patents, know-how etc.

The oligopolistic market structure has high barriers to entry. Entry barriers include patents, laws, industry regulations, and high capital investment. High cost and high initial capital investment are major obstacles to entry into the mobile communications market. When considering Dialog, it is operated with an oligopolistic market structure, and barriers to market entry are great. All companies operating in the mobile communications industry in Sri Lanka may be subject to a license granted under section 17 of Article 25 of the Sri Lanka Telecommunications Act 1991. (Sri Lanka Telecommunications Regulatory Commission, 2010) This is an important reason for oligopolistic market structure companies to obtain normal profit.