Market structure is generally indicated by

• Market structure refers to the characteristics of a market that define how competition takes place. Three key factors influence market structure:
-Number of Firms in the Market (Competition Level): This refers to the number of buyers and sellers in the market. A higher number of firms, especially on the seller side (more competition), can lead to lower prices and a more efficient market.
-Number of Market Functionaries: These are intermediaries who facilitate market transactions, such as brokers, auctioneers, or grading services. Their presence and efficiency can impact market transparency and price discovery.
-Market Design: This refers to the way a market operates, including elements like spot markets (immediate transactions) or futures markets (contracts for future delivery), and trading mechanisms (auctions, electronic platforms). The design can influence factors like price volatility and access to information.

🛑 Related Terminology:
-Perfect Competition: A theoretical market structure with numerous buyers and sellers, freely available information, and a homogeneous product. It leads to efficient outcomes with firms earning normal profits (no excess profits).
-Imperfect Competition: Most real-world markets exhibit some imperfections, such as monopolies (one seller) or oligopolies (few sellers). These can lead to market power for some firms and potentially higher prices for consumers.
-Market Concentration: The degree to which a small number of firms control a large share of the market. It's often measured by metrics like the Herfindahl-Hirschman Index (HHI).