How is price determined in each market structure in terms of maximizing profits?

1100-word paper on Market Structures and Maximizing Profits. Address the following:  What are the characteristics of each market structure?  How is price determined in each market structure in terms of maximizing profits? How is output determined in each market structure in terms of maximizing profits?  What are the barriers to entry, if any? What role does each market structure play in the economy? • Format your paper according to APA guidelines.

All for-profit organizations or firms seek to realize improved financial performance

or maximize their profits. These firms operate in different dynamic industries within four

basic market structures. This is a discussion of profit maximization in different market

structures.

Characteristics of each market structure

A market structure refers to the number of companies or organizations

generating similar products in an economy (Mastrianna, 2009, p.100). Market structures

vary from perfect competition to monopoly. There are four primary market structures

including monopoly, oligopoly, monopolistic competition and perfect competition

(Mastrianna, 2009, p.100).It is pertinent to note that some of the major differentiating

features of diverse market structures include the number of companies in a given

industry, existence or absence of product differentiation and the capability of one or all

organizations to sway the market price (Mastrianna, 2009, p.100).

A monopoly market structure refers to a situation where there is only one

producer of a product or provider of a service. The main feature of monopoly is barrier

to entry (Sexton, 2007, p.332). A monopoly provides a product or service that does not

have a close replacement or substitute. The monopolist company sets the market prices

(Sexton, 2007, p.332). Monopolies emerge from sources such as special rights provided

by authorities through copy rights and patents, public utilities like electricity provision,

natural monopoly resulting from economies of scale and control of a major resource like

rare minerals and rain forests (Sexton, 2007, p.332).

An oligopoly market structure is a market where there are a few providers of a

product or service.

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