FINANCIAL CHALLENGES 2The following video discusses the four types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly.Given the market structures as described in the video, identify at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today in these varied market structures. In a three- to five-page paper (excluding title and reference pages), summarize your findings from the articles. Include how market liquidity, competitiveness, and efficiency impact financial managers.The paper should be formatted according to APA style as outlined in the Ashford Writing Center. Be sure to properly cite your two required articles resources using APA style.IntroductionFour market structures exist currently. These structures are perfect competition, monopolistic competition, oligopoly, and monopoly. Each of these structures have their own strengths, opportunities and weaknesses and/or challenges. All firms must enter or exit markets no matter what market structure the firm enters. Perfect CompetitionPerfect competition is the happy medium amongst all different market structures and doesnot exist very often. Each firm within this group must sell the exact same product and the firms must all be price takers and are not able to control the price. Each firm represents a very small market share and buyers have full disclosure. Monopolistic CompetitionMonopolistic competition as described by the video Microeconomics: Understanding the market system, having multiple firms in the market, each firm has a very small market share and
Financial 2 Financial Management Challenges Introduction There are four market structures discussed in the video. These four market structures define the different types of markets in the business world. The four market structures are perfect competition, monopolistic competition, oligopoly and monopoly. Each of these four markets have different characteristics. The first market structure is perfect competition. Perfect competition has many sellers and a small market share. There is no differentiation and free entry and exit into the market. This market is considered the price takers. This type of market does not exist in the world. The closest market to this is Monopolistic Competition. Monopolistic Competition consists of many firms and a small market share. There is a low entry and exit barrier and differentiation. There is also price control due to advertising and the competition. This market is considered to be the price setters. Some examples of businesses in the monopolistic competition are restaurants, fitness centers, clothing stores and hair design. Another type of market structure is Oligopoly. In an oligopoly there are few firms and a high entry and exit barriers. They are considered the price setters and have a lot of competition. Oligopoly is considered an interdependent market share. Some examples of an oligopoly market are supermarkets, banks and telecommunications. The last market share is a Monopoly. In a monopoly there is one supplier and no competition. There are high barriers to entry and are the price setter. A monopoly exists only in government concentrated markets. The closest business to being a monopoly is Microsoft. The purpose of this paper is to discuss some of the biggest challenges facing financial managers today in these varied market structures. Included in the paper will be how market liquidity, competitiveness, and efficiency and how it impacts the financial managers.