Forms of industrial organizationsIntroductionPurchasing decisions essentially revolve around price. Prices are affected by market competition. Therefore, manufacturers control product prices as well as the quantity of output produced to meet market demands. These decisions are influenced by the type of industry in which these organizations operate. Economists divide the market into four distinct market structures: pure competition, monopoly, oligopoly, and monopolistic competition. This article will differentiate between different market structures, while identifying pricing and non-pricing strategies within each market structure. Pure competition According to McConnell & Brue, “pure competition involves a very large number of companies producing a standardized product” (McConnell & Brue, 2004). In a context of pure competition, new companies can enter and exit the sector very easily. Pure competition is considered rare and its market model is very relevant. The markets for “agricultural products, fishing products, currencies, base metals and stocks” are among the few industries that closely identify pure competition market structures (McConnell and Brue, 2004). The fast food industry is a direct example of pure competition. . Organizations such as Burger King, McDonalds, Jack in the Box and Carl's JR. etc., all produce uniform products, such as fries, burgers and shakes. Most fast food restaurants pay close attention to prices. These leading chains compete in an unpredictable market. Clever pricing tactics are used, such as .99 cent and dollar menus; and the most popular, oversizing value meals. The fast food industry is always looking for ways to attract budget-conscious consumers. “People buy fast food because it is cheap, easy to prepare and heavily promoted” (Warsi and Nisa, 2005). Today, with the growing trend in the health food market, most fast food restaurants, such as McDonald's, are coming up with new strategies to improve their menus to include healthier selections, such as salads, yogurt gourmet and fresh fruit. The fast food industry relies on its consumers to spread its trends. The law of demand complements the pricing strategy of this industry. Monopoly A monopoly “exists when a single firm is the sole producer of a product for which there are no close substitutes” (McConnell & Brue, 2004).