Why is the structure of a market important if we wish to explain and predict the choices made by firms?



Answer:
Because rational actors respond to incentives, and market structure can shape incentives and disincentives (for example, anticipated barriers to entry), especially given that no market is ever perfectly competitive. Market structure will also affect the amount and quality of information available to actors, which will also affect choice behavior.
More Questions and Answers:
  • what is the relationship of the 2007 election to economics?
  • urban growth in developed versus undeveloped countries?
  • What would you do about Economic Poverty?
  • if the Fed faces changes in the cost-push pressure that shift the SAS curve, the Fed's monetary policy shifts
  • I need Help I forgot what i need to now with this PLEZ help!?
  • Elaborate the causes and effects of poor factory layout in more than hundred words?
  • does anyone knowthe current money equivalent of a penny from the 1500's in England?
  • Inflation: If you make more money, why do the prices have to go up? Can they be the same and people be rich?
  • The member banks of the federal reserve sell shares to private banks?