Some characteristics of market structure are:
- Market structure shows the number of firms in a market to define the level of competition.
- It reflects the pricing power firms hold to determine how freely prices can change.
- It describes the degree of product differentiation to guide how buyers compare options.
- It indicates the ease of market entry or exit to shape long-term competitive pressure.
- It explains the availability of market information to support fair and informed decisions.
- It shows the level of market concentration to explain how much control a few firms hold.
- It identifies the nature of buyer power to clarify how strongly customers influence business decisions.
- It reflects the stability of market demand to show how predictable or volatile the industry becomes.
- It describes the role of government regulation to explain how rules shape pricing and competition.