Pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as far as the customer can bear. The pricing strategies for a producer operating in a perfect competition structure are also fairly intuitive. They are price takers. This is due to the fact that there are many firms offering nearly identical products. However, the optimal pricing strategies for the market structures offering differentiated products with many competitors (monopolistic competition) or a few producers (oligopoly) are much more complex and involved. It has been stated that differentiation in products that creates differences in customer valuation is the most prevalent type of competition.
Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific company by identifying its market structure.