7.6.2—Market structure features

Key market-structure features include the number and relative size of firms, product homogeneity or differentiation, freedom of entry and exit, information, and whether firms are price takers or price makers.

In oligopoly, each firm must also consider rivals’ responses. In monopoly, a single supplier faces the market demand curve but may still be constrained by substitutes, regulation and potential entry.

A small wheat farm is close to a price-taking benchmark; a dominant branded platform can influence price or terms, but user switching and potential competitors limit its power.

“Price maker” does not mean a firm can charge any price and sell any quantity; demand, substitutes and strategic responses still constrain it.