group 11 , Course-110 Prepared by Students of University of Rajshahi For downloading this contact- bikashkumar.bk100@gmail.com

1. 1
If you want to shine like a sun, first burn like
a sun.
-A. P. J. Abdul Kalam

2. Market And Market
Structures
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3. Course No.110
Course Name : Microeconomics
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5. MARKET
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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”

9. Definition
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Market structure refers to those characteristics
of the market which affect the traders
behaviour and their performance.

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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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Major characteristics
•Product differentiation
•Existence of large number of firms
•Freedom of entry and exit of firms
•Selling costs
•Buyers and sellers do not have perfect information
(Imperfect Information)

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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

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Monopoly: Characteristics
One firm
Unique product
Blocked entry
Market power
--Price Maker
Examples
--Local Utilities

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25. “Your time is precious, so don't waste it living
someone else's life.”
-Steve Jobs

26. “All lasting business is built on friendship.”