Market structure refers to the organizational characteristics of a market, influencing the behavior of firms and consumers. It encompasses various types, including perfect competition, monopoly, oligopoly, and monopolistic competition, each with distinct features that affect pricing, output, and market dynamics. Understanding market structure is crucial for analyzing how markets function and how firms compete. For instance, in a monopoly, a single firm dominates the market, leading to higher prices and reduced consumer choice. In contrast, perfect competition allows many firms to compete, resulting in lower prices and greater innovation.