Market structure plays a big role in how companies decide to make money. Here are some important factors to think about:

1. Types of Market Structures:

   • Perfect Competition: This is when there are many companies competing. The prices are set by what the market wants. In the long run, companies usually make just enough money to stay in business.
   • Monopoly: This is when only one company controls the market. There are tough rules that stop other companies from entering. A monopoly can charge higher prices, making more profit than usual.

2. Pricing Strategies:

   • Pricing can change based on how much people want a product. In a monopoly, demand often stays the same even when prices rise, which means they can charge more without losing many customers.

3. Market Share Statistics:

   • In many businesses, a small number of companies (about 20%) can control a large part (around 80%) of the market. This affects how much they can compete with each other and how they set their prices.

By understanding these market structures, companies can better plan their strategies to earn more profit.