Introduction An industry consists of many closely related firms offering differentiated goods and services. These firms offer similar products with minor modifications that make them different. The modifications are in terms of shape, size, or form of the products that make them different. Before starting a company, it is crucial to determine the industry structure within which the company lies. An industry structure refers to the number of firms in an industry and their size. If an industry comprises of small size firms in relation to the size of the industry, this form is a fragmented industry. On the other hand, a consolidated industry has a few small firms having a large market share. There are various types of industry structures depending on the concentration ratio. This ratio indicates the relative size of firms in relation to the whole industry (Scherer, 1996, p. 298). It shows if an industry consists of a few large firms, or several small firms. Therefore, the industry structure could be a perfect competition, a monopoly, a monopolistic competition, or an oligopoly. In a perfect competition market structure, no firm dominates the other. The firms sell similar products and the prices are set through the market forces of demand and supply. In a monopoly structure, there is only one firm in the industry. This firm sells high value products and sets the price in the market. A monopolistic competition is different from monopoly; it is an imperfect market consisting of many suppliers who sell differentiated products. These suppliers decide to set prices in the market. Finally, an oligopoly is a market structure that has a few suppliers with barriers to entry (Porter, 1979, p.15). This article analyses two industries in different market structures. Industry A Definition Industry A has 20 firms with a Concentration Ratio (CR) of 30%. This industry falls under a perfect competition market. In this type of industry, many firms sell similar products and services without one dominating the other (Porter, 1979, p.11). This industry has a CR of 30% meaning that, the largest firms in this industry own only 30% of the market share. Therefore, the industry is extremely competitive with a number of the 20 firms competing fairly. No firm dominates the other in this industry through owning a large market share. In this industry, the firms sell identical products, and they take the price set by market forces of demand and supply. Characteristics This industry, being a perfect competition, has several characteristics. It consists of a many small firms that sell identical products. These firms have little influence on the price of the products. The market forces of demand and supply determine the price charged in this industry. This industry also consists of many buyers who are price takers. Their purchase of the products does not affect the price. The products sold are similar; therefore, the consumers are indifferent when purchasing these products. They can purchase from any supplier without affecting other suppliers. In this industry, there are no barriers to entry or exit in the industry. Firms are free to join and leave the industry without restrictions. Technological, social, legal, or economic barriers are not characteristic of this industry. Firms can choose to start or end production