In economies, sector or goods there are various markets so there are various types of outputs and pricing decisions normal outputs and pricing decisions are connected except for in a competitive market one organisation by itself wouldn’t be able to affect the price in the market, it must go by the price that it is and then decisions can be made on the quantity they will supply. The price will be equal to the price of production. An organisation has complete control can change the price of goods as it is the provider of the goods and therefore has the power in the market however if there is an increase in price then the quality must go up as well, so in this situation the monopolist must consider the positive and negative effects. There is also another monopolist situation where the price is determined by strategy amongst other organisations. The structure of the market is how many buyers or sellers in are the market.
There are various market structures
Oligopoly is where they have some ownership over the price this is where there are various sellers of the same product all selling the product for the same price but the advertising will be different and the customer will decide who they buy from.
Perfect competition is where there is one product sold by various sellers where the price and output is dictated by the demand for the product when the market is competitive buyers can dictate the price of the product and then the organisation makes the decisions to compare the demand of the product as every organisation will try to lower their prices to regain market share.
Duopoly is a type of oligopoly but this is where two organisations control the market