NAVIGATING THE FOUR MARKET STRUCTURES: INSIGHTS INTO FIRM PRICING AND STRATEGY [MENAVIGASI EMPAT STRUKTUR PASAR: WAWASAN TENTANG STRATEGI PENETAPAN HARGA DAN PERUSAHAAN]

Rahmat, Hayatul Khairul

Al-Ihtiram: Multidisciplinary Journal of Counseling and Social Research
Vol 3, No 2 (2024): November

The study of market structures is a key aspect of microeconomic theory as it provides a framework for understanding firm behaviors and outcomes. Market structure refers to the characteristics and organization of a market that influence how firms set prices, determine output levels, and maximize profits. This paper discusses the four main market structures: perfect competition, monopolistic competition, oligopoly, and monopoly. Each market structure differs in terms of the number of firms, the degree of product differentiation, barriers to entry, and information transparency, all of which shape pricing strategies and firms' ability to sustain or maximize profits. The study also analyzes how firms' pricing strategies are influenced by each market structure and the real-world implications of these theoretical models in practice.