How Do Market Structures Determine Output Decisions And Pricing Of A Small Business?

Different types of marketing structure require the business owners to apply various types of pricing strategies. For instance, if a company exists in a monopoly market, then the organization might cost higher price than what the organization needed to cost in a perfect competition market. In monopolistic market structure, the company can determine a price of the product based on the consumer’s approach toward the distinctive feature that they avail, while in duopoly the company needs to ensure that the consumers prefer their product over the competitor through pricing policies too. In such cases, the business organizations tend to use the product price as their competitive advantage. In monopolistic structures, organizations have several competitors, but they sell different products. On the other side, it can be said that many small businesses are perfect competitors to each other. It can be stated that they are operating in duopoly market because no other organizations are as powerful as them.