ABSTRACT
Market structure determines the type of competition that is found in the industry. Perfect competition occurs when there are many buyers and sellers who have very little or no control over price. A perfectly competitive industry is one in which there are a large number of small buyers and sellers who can enter and exit the industry with no restrictions. In the short run, in a perfectly competitive market, firms are considered as price-takers. On the basis of the market adjustments, firms in perfectly competitive markets have zero economic profits in the long run. Without competition, the monopolist dominates the market so that the monopolistic firm effectively defines the supply side of the market, and this determines the price for the market. Boeing and airbus compete in the large commercial aircraft market, comprising aircraft with over 100 seats, while Bombardier and Embraer compete in the regional jet market.
