1. Determinants of Market
Structure
ECONOMICS

2. 1. Government laws and
policies
 In some industries, the government
controls the degree of competition in
the interest of the economy and the
consumers.

3. 2. Technology
 Technology has a great impact to
market structure because good or
better substitutes have been
developed.

4. 3. Business policies and
practices
 The presence of giant firms
discourage the entry of new firms with
little resources.
 Cut-throat competition

5. 4. Economic freedom
 In a free-enterprise economy or free-
competition economy, it is the survival
of the fittest.
 The most efficient firms remain in
business.

6. Price and Output
Determination
 Pure Competition
-The demand curve of an individual
firm under a purely competitive
industry is perfectly elastic.
 Market Demand
-The demand curve is inelastic.

7. Demand and revenue schedule of a purely
competitive firm
Price Quantity TR MR AR
demanded
P5 1 P5 P5 P5
5 2 10 5 5
5 3 15 5 5
5 4 20 5 5
5 5 25 5

8. Demand, marginal revenue and total revenue of a purely competitive
firm
TR
Price
and
revenue
D = MR
Quantity demanded