Reply to this post you agree or disagree

The Market Structure Pricing, Performance, and Conduct Analysis

Imperfect competition is a market structure with the following main characteristics: many companies, producing a given good or service; each company produces a differentiated product, but with close substitutes; each company has a certain power over prices, given that the products are differentiated, and the consumer has options according to his preference.

Differentiation of products takes place with physical characteristics, packaging, sales promotion, maintenance, after-sales service, etc.

As there are no barriers to the entry of firms, in the long run, there is a tendency only for normal profits, as in perfect competition, that is, extraordinary short-term profits attract new firms to the market, increasing the product offer, until to a point where normal profits will persist, when then the entry of competitors ceases.

It would make a solid connection with your best customers, show them that they are important, knowing each of their needs. Feedback is essential to achieve it, it provides clarity for problem-solving and for consumers to be sure their voice counts. Always trying to keep in mind that it is not just about listening to the customer, but also responding to their needs.

Source:https://www.economicsdiscussion.net/market/market-structure/market-structure-conduct-and-performance-with-diagram/20249