Market structures play a big role in how businesses run. Let’s break down how these structures affect their strategies:

• Perfect Competition: There are many sellers, and they offer similar products.

  • Strategy: Businesses may lower prices or improve the quality to win over customers.
  • Outcome: Profits can be lower because competition keeps prices down.

• Monopoly: Only one seller controls the market.

  • Strategy: The business can limit how much it supplies to keep prices high.
  • Outcome: This can lead to higher profits, but there might be less new ideas or improvements because there is no competition.

So, whether a business is up against many competitors or just one can really change how they plan and how successful they are!