Market Structure

Market structure, in economics, depicts how firms are differentiated and categorised based on the types of goods they sell and how their operations are affected by external factors and elements. Market structure makes it easier to understand the characteristics of diverse markets.

This market structure exists when there are multiple sellers who attempt to seem different from one another. Examples: toothpaste, soft drinks, clothing as they all are homogeneous products with many buyers and sellers, no to low entry barriers but are different from each other due to quality, taste, branding.