Key Concepts of the Competitive Environment Kinds of Markets.
Economists identify four basic kinds of market situations.
In a monopoly, one company serves the entire customer base. Such circumstances are rare, and in the US, often subject to government regulation. Here a number of different firms offer marketing mixes that at least some customers see as different. Each firm attempts to monopolize its own target market but competition still exists. Changing customer tastes may affect how different consumers see each offering and various alternatives may be considered substitutes.