Market structure and the determination of market price Essay

Market structure and the determination of food market price - Essay ExampleOn the other hand, an imperfect market is characterized by regulations limits the number of individuals exchange products or services (White and Fraley, n.d.). The pharmaceutical industry is a highly regulated industry hence it presents a great level of imperfect competition.The imperfect competition in the pharmaceutical industry is found on the supply side 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 focus on changing trends in the in the market. New entrants willing always face challenges. In order to run across that these pharmaceuticals do non fix prices, governments facilitate the adoption of bilateral monopolies as well 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 facilitate the throw in the supply curve. However, the demand curve can also be unnatural when individuals opt for alternating(a) 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 result 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, Lacy 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 industr y. Journal of Ethics, Vol 1, No 2. Retrieved on 30 January 2014 from