3. Those characteristics of the
market that significantly affect
the behavior and interaction of
buyers and sellers.
4. The Meaning of Competition
The actions of any single
buyer or seller in the
market have a
negligible impact on
the market price.
5. –Number and size of producers and
consumers
–Types of goods and services being
sold.
–Availability of information about the
products being sold.
–Conditions of entry and exit
What are the main criteria used to distinguish
the different market structure?
13. Perfect Information
1. Buyers and sellers have all the pertinent
information necessary for them to make decisions
on buying or selling goods and services.
14. Examples of Perfect
Competition :-
• Buyers and sellers in some
auction-type markets, say for
commodities.
• Street food vendors are also
considered to be a part of a
perfectly competitive market.
Their products are
homogeneous in nature, and
they are priced accordingly.
Consumers are free to make
purchases at any vendor they
prefer.
17. Product Differentiation
This is the most feature of
monopolistic competition.
Each product in this
market is different from
other product in some
form or the other. The
differences could be in its
colour, shape, wrapper,
etc.their products, though
different, are close
substitute to each other
eg. Tide is close
substitute to surf excel.
18. Demand Curve of the
Seller
Due to product
differentiation and
availability of close
substitute, demand
curve is highly price
elastic and downward
sloping. It means a
slight change in price of
the product will bring
about a change in
quantity demanded.
