How do Prices Allocate Resources

Ok, so, the 'type of market' means the saturation of sellers in the market. There are 4 basic types of markets all have varying types of competition. They range from perfect competition (lots of competition) to monopoly (no competition). A firm in the perfectly competitive market would want to produce at the point where Marginal cost = marginal revenue (meaning the cost of making one more product = the revenue received from selling it). This means that they do not make a profit in the long run (sucks to be in a perfectly competitive market). So basically, this all goes back to the ideals of supply and demand. The more supply (in perfectly competitive market's case, extreme supply) the lower the price of the product.
It might be all confusing, and im prolly not helping lol, but its easier to understand with some explanation. The higher the competition = higher the supply, and thus lower the price. Theres all these formulas on where to place the price in each market (they are all based on the graphs of the firms themself). Price goes on the vertical axis, and # of products on the horizontal. on the graph you put on the marginal cost, the marginal revenue, and the total cost and total revenue curves. From there you trace to where marginal cost = marginal revenue (if ur perfectly competitive). It should look something like this: Example of Econ graph Thats not a perfectly competitive firm but its similar. In a perfectly competitve firm, there would be no profit (as shown by the area between C and P on the vertical axis).
*out of breath*
Ive prolly confused u more now