1.Firms do not exist in an airless space, they are constantly faced with competition. Obviously, the decisions of sellers (buyers) on the price and volume of production (purchase of goods) will vary significantly for different types of market structures.
The market structure is determined by the number and size of firms, the nature of products, ease of entry and exit from the market, and the availability of information.
Each type of market structure encourages the company to adjust the assortment, improve production technologies and marketing policies.
2.The most significant factor affecting market performance is competition. Productivity of the market directly depends on how instruments of competitive behavior of firms function effectively in this market.
Not the least role in market productivity is to take into account the specific features of the economic and geographical location, factors of the presence of different types of resources and the availability of mechanisms for their effective use.