The importance of knowledge market structure has always been a vital asset since the rise of globalization. In today's world, the debate about which branch has its own market specificity - the production of different goods, various industries of sellers, size of enterprises, characteristics of innovation, composition and specificity of consumers, is becoming more and more popular. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essay In microeconomics, the most basic market structures are generalized and the behavior of manufacturing firms is studied, leading to the receipt of greatest profits for them-receiving the maximum profit. All these generalizations are considered a key development, specific recommendations are developed, which were of crucial importance in the choice of the behavioral strategy of the company in specific market characteristics. The subject of competition assessment is the industry. For example, a group of competitors producing goods/services and competing directly with each other. The purpose of the analysis is to identify the "competitive advantages" of the company and the choice of a competitive strategy. There are four main market structures: perfect competition, monopolistic competition, oligopoly and monopoly. Perfect Competition Perfect competition indicates a market structure in which a large number of small businesses compete with each other. Additionally, corporations do not have a significant impact on market power. Therefore, the manufacturer usually produces the absolute level of output, which in turn leads to a market where many buyers and producers exchange homogeneous products, so that each buyer and seller is a price taker. Perfect competition is based on the following elements: • All small businesses strive to maximize profits. • The products offered by different sellers are largely typical. • There are no specific preferences between different sellers . It doesn't matter to the customer from whom the companies buy the products. • All businesses have free entry and exit from the market. • There is perfect information and knowledge about homogeneous products. Currently, according to Nelson (2017) statistics, 3,885,567,619 people out of the world's population 7,519,028,970 people use the Internet. Around 3.9 billion Internet users are both producers and consumers. The example mentioned above demonstrates that the Internet is a market in which a myriad of consumers/producers operate without any influence on market power, leading to equality of opportunity in this market, illustrating one of the characteristics of perfect competition. Example of perfect competition. Internet-related industries. The Internet has a strong influence on the perfect competition market because it has made it possible to compare and check prices easily, quickly and efficiently (perfect information). Therefore, selling any type of good on the Internet through a service such as Alibaba, Aliexpress and E-bay is extremely similar to perfect competition. For example, it is increasingly common to use the online magazines mentioned above to compare prices of any type of product and buy cheaper ones. Like perfect competition online magazines, namely Alibaba, Aliexpress and E-bay, they rely on the following:•There are also a large number of sellers.•Perfect information and knowledge. It is easy to compare prices of goods. • There are no barrierssignificant when entering and exiting the market. Monopolistic Competition Monopolistic competition is a type of market structure composed of many small firms that produce differentiated products and allow free entry and exit from the market. These companies' products are close, but not completely interchangeable, meaning there is a difference in price, features, branding, and marketing. By differentiating the product, the/a monopolistic competitor reduces price elasticity. By raising prices, the monopolistic competitor is not lost to all consumers, as is the case under conditions of perfect competition. The market is somewhat small, but there are still those who consistently prefer products from this manufacturer only. Monopolistic competition is based on the following elements: • availability of numerous sellers and buyers (the market is made up of a large number of companies and independent buyers); • free access to the market and exit from the market (no barriers preventing new companies to enter the market). exit the market);•Differentiated and varied products offered by competing companies. In addition, products may differ from each other in one or more properties (for example, in chemical composition); •perfect knowledge of sellers and buyers of market conditions; •influence on the price level, but in a fairly narrow framework Example of monopolistic competition: One of the most practical examples of monopolistic competition is washing powder. There are many different companies in Poland such as Ariel, Tide, Ares, Perwoll, Lenor, Vizir, Perlux, Maxi that, FF, Persil, Look, Surf, BioPower, Origami, etc. Accordingly, for the production of new varieties of powder detergents, it is not necessary to create a large enterprise. Therefore, if companies producing powders achieve large economic profits, it will lead to the influx of new companies into the industry. New companies will offer consumers new brand detergents, sometimes little different from those already produced, new packaging, another color or designed to wash different types of fabrics. OLIGOPOLY The oligopoly market is characterized by the presence on the market of a minimum number of large sellers, whose products can be either homogeneous or differentiated. Entry into the oligopolistic market is extremely difficult, the barriers to entry are very high. Individual companies' control over prices is limited. Examples of oligopoly can serve the automobile market, cellular communications markets, household appliances, and metals. The difference from oligopoly is that companies' decisions regarding the prices of goods and the volumes of their supply are interdependent. The situation on the market strongly depends on how companies react when the price of a product changes among one of the market participants. Two types of reactions are possible: the first is the reaction, when other oligopolies agree with the new price and set the prices of their goods at the same level (follow the initiator of the price change); the second reaction of ignorance - other oligopolies ignore the price change of the initiating company and maintain the previous level of prices for their products. Thus, the oligopolistic market is characterized by a broken demand curve. Characteristics and conditions of oligopoly: • the number of sellers in the industry: small; • the size of companies: large; • the number of customers: large; • goods: homogeneous or differentiated; • control over prices : important; • access to market information:.