6. What is a Market?
• Place where there are many buyers and sellers .
• Actively engaged in buying and selling acts.
• Contact through different means of communication like
letters, telephone etc.
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According to Prof.J.C. Edwards “A Market is that
mechanism by which buyers and sellers are brought
together.It is not necessarily a fixed place”
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Market structure – identifies how a market
is made up in terms of:
The number of firms in the industry
The nature of the product produced
The degree of monopoly power each firm has
The degree to which the firm influence price
Profit levels
11. Types of Market
Market on the basis of area , are there types :
1.Local Market
2.National Market
3.International Market
12. On the basis of Time :
1.Very Short Period Market
2.Short Period Market
3.Long Period Market
13. On the basis of competition
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1.Perfect Competitive Market
2.Imperfect Competitive Market
Imperfect Competitive Market
1.Monopolistic Competition
2.Oligopoly
3.Monopoly
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Perfect competition is a market situation where there are infinite number
of sellers that no one is big enough to have any appreciable influence over
market price.
Perfect Competition Market
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1.Large number of buyers and sellers
2.Homogeneous Product
3.Perfect Knowledge about market conditions
4.Free entry and free exit
5.Perfect mobility of factors of production
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Monopolistic Competition
Monopolistic competition refers to the market
situation in which a large number of sellers produce
goods which are close substitutes of one
another.The products are similar but not identical.
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Oligopoly refers to a form of imperfect competition
where there will be only a few sellers producing either
homogenous or differentiated products.
Oligopoly
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The three most important characteristics of oligopoly are:
1.Interdependence
2.Group Behavior
3.Price Rigidity
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A market structure characterized by a single seller, selling a unique
product in the market. In a monopoly market, the seller faces no
competition, as he is the sole seller of goods with no close substitute.
Monopoly