Types of Competition !

1. MARKET STRUCTURE
SUBMITTED TO SUBMITTED BY
Prof. Gurpartap Singh Shaifali Verma
MBA-1 ‘B’

2. MARKET STRUCTURE
Market Structure refers to the size and
number of Buyers and Sellers in the market for
a good or service.
A market can be defined as a group of firms
willing and able to sell a similar product or
service to the same potential buyers.

3. TYPES OF MARKET STRUCTURE
PERFECT COMPETITION
MONOPOLISTIC
COMPETITION
MONOPOLY
OLIGOPOLY

4. 1. PERFECT COMPETITION
FEATURES
I. Large number of Buyers and Sellers.
II. Products are perfect substitutes of each other (
HOMOGENEOUS PRODUCTS)
III. Free entry and exit of firms.
IV. Perfect knowledge about the Market.
V. No Government intervention.

5. EXAMPLES OF PERFECT
COMPETITION
STREET FOOD
FISH MARKET
VEGETABLE MARKET

6. 2.MONOPOLY
FEATURES
i. One seller and large number of buyers.
ii. Restrictions on the entry of New Firms.
iii. Firm is Price Maker.
iv. Products have no close substitutes.

7. EXAMPLES OF MONOPOLY
Indian Railways has Monopoly in
Rail Transportation.
Hindustan Aeronautics Limited has monopoly
over production of Aircraft.
There is Government monopoly over
production of Nuclear power.
Eatables inside a Theatre during a movie.

8. 3.MONOPOLISTIC COMPETITION
FEATURES
i. Large number of Buyers and Sellers in
the market.
ii. Product Differentiation.
iii. Free entry and exit of firms.
iv. Firm is a Price maker.
v. Imperfect Knowledge.

9. EXAMPLES OF MONOPOLITIC
COMPETITION
Lux, Godrej, Hamam, Dove,etc, among
Bathing soaps…..
(Here, Products are close, but not Perfect
Substitute of each other)

10. 4.OLIGOPOLY
A market structure in which few firms dominate
the supply of an industry’s output and compete
with each other for markets.

11. OLIGOPOLY
FEATURES
i. Industry dominated by small number of large firms
ii. Many firms may make up the industry
iii. High barriers to entry
iv. Products could be highly differentiated – branding
or homogenous.
v. High degree of interdependence between firms.
vi. Collusion.

12. EXAMPLES OF OLIGOPOLY
CAR INDUSTRY
AIRLINE INDUSTRY
CIGARETTES
STEEL INDUSTRY
TELECOMMUNICATION

13. BASIS PERFECT
COMPETITION
MONOPOLY MONOPOLISTIC
COMPETITON
OLIGOPOLY
No.of
buyers and
sellers.
Large One seller,Large
Buyers
Large Few
sellers,Large
Buyers
Product Homogeneous Homogeneous
& Differentiated
Product
Differentiation
Homogeneous
& Differentiated
Price Uniform Not Uniform Not Uniform Not Uniform
Entry of
Firms
Free Entry Not possible Not absolute
Freedom
High Barriers
Knowledge
of Market
conditions
Perfect Knowledge Imperfect
Knowledge
Imperfect
Knowledge
Imperfect
Knowledge
Selling
Costs
Not Required Not Required Very significant Very Significant

14. THANK YOU 