Market structure and the determination of market price Essay

Market structure and the determination of market price - study ExampleOn the other hand, an imperfect market is characterized by regulations limits the number of individuals selling products or services (White and Fraley, n.d.). The pharmaceutical industry is a highly modulate industry hence it presents a great level of imperfect competition.The imperfect competition in the pharmaceutical industry is found on the supply look of the market. There are so many regulations that follow before the product is introduced in the market. The bigwigs in the industry have already overcome the regulations hence concenter on changing trends in the in the market. New entrants will always face challenges. In order to ensure that these pharmaceuticals do not fix prices, governments drive the adoption of bilateral monopolies as rise as do bargaining to ensure the prices are regulated (White and Fraley, n.d.) Increase in the number of producers as well as elimination of regulations will facilitat e the shift in the supply curve. However, the demand curve can also be affected when individuals opt for pick medicine.Firstly, removal of regulations can facilitate the increase in the number of producers hence the shift in the supply curve. Secondly, lack of government bargaining can resultant role to the pharmaceuticals overpricing since the demand for pharmaceuticals is constant. Finally, Use of alternative medicine can result to a shift in the demand curve because the consumption of pharmaceutical products is reduced (Guha, webbed and Woodhouse, 2008)..Guha, R., Lacy, A. M. and Woodhouse, S.(2008). Analyzing competition in the Pharmaceutical industry. Economics Committee Newsletter, Vol 8 No.1. Retrieved on 30 January 2014 from http//www.cornerstone.com/getattachment/5f41372f-11ac-4f45-9f27-45b1dad16444/Analyzing-Competition-in-the-Pharmaceutical-Indust.aspxWhite, R. F. and Fraley, S. (n.d). Imperfect competition, price fairness and the pharmaceutical industry. Journal of Et hics, Vol 1, No 2. Retrieved on 30 January 2014 from