The industry I chose was Finance and Insurance. They primarily engage in financial transactions in which involve liquidation or change within ownership of the financial assets. There are three principal types of activities that has to be identified in which raising funds by taking deposits, pooling risk by underwriting insurance, and provide specialized services.
The Finance and Insurance market structure is that it target loans, loan amounts, and borrowing periods. Target loans is a net outflow of money to pay for a inflow of goods. Loan amounts is the total amount that a borrower is authorized to borrow. Borrowing periods is where the loan is spread out in payments and collects interest over time. There are two market characteristics that supports this market structure is the Perfect Competition Structure and Oligopoly Market Structure.
Perfect Competition Structure is a market where it forces supply and demand and to determine the amount of goods or services that is produced in which market prices are set by the companies that are within the market. This market structure is realistic for free entry and exit in which companies can move in easily and easy exit when the market is not making profits. “Buyers and sellers are referred to as price takers rather than price influencers.”Oligopoly Market Structure is a market where it targets large or small firms. In which they target powerful firms such as finance and it creates barriers for new firms to enter. If the prices are too high then buyer will negotiate on the markets substitutes.
In macroeconomic conditions and monetary policy it start from the crisis of the major central banks and around the world to adjust to their respective monetary policy to reflect off their diminished risks for the price of stability. The institutions have clearly had a strong commitment to the international central banking community of their high expectations to address the macroeconomic background of financial crisis. The macroeconomic policy is to ensure a separation of responsibilities to ensure economic growth. On the market outcomes can be when a buyer can predict what happens with the price and it turns out to be risky in order to make profit. In other words they can decrease or increase the price to their needs.
The government impact it depends on the nature of the regulation and the workload can increase for financial services. Also to investors against fraud and to encourage more investment to help stabilize financial companies.