Market structures refer to the organizational and competitive characteristics of a market. They determine how firms compete, the pricing of goods and services, and the overall market dynamics. The main types of market structures include perfect competition, monopolistic competition, oligopoly, and monopoly, each with distinct features and implications for consumers and producers alike. Understanding market structures is crucial for businesses and policymakers. For instance, in a perfect competition scenario, numerous firms sell identical products, leading to optimal pricing for consumers. In contrast, a monopoly allows a single firm to dominate the market, often resulting in higher prices and less choice for consumers.