Road map; DEFINITION OF MARKET FEATURES OF MARKET MARKET STRUCTURE FEATURE OF COMPETITIVE MARKET & MONOPOLY MARKET

1. Welcome to Presentation
Md. Marufur Rahman

2. ROAD MAP:
• DEFINITION OF MARKET
• FEATURES OF MARKET
• MARKET STRUCTURE
• FEATURE OF COMPETITIVE MARKET & MONOPOLY
MARKET

3. WHAT IS MARKET?
Generally market is the place where buyers and
sellers are physically present and finalize the
transaction.
Prof Stonier and Prof Hague:-
By a market economist mean any organization
whereby buyers and sellers of a goods are kept
in close touch with each other.

4. FEATURE OF MARKET:
• Buyers and Sellers:- Buyers and Sellers are must for
market. In Transaction Physical Presence is not necessary.
• One Area:- Denote to a area or a region in which no of
buyers and sellers are scattered. They are connected with
one another via brokers, agents, letters. Etc.
• One Commodity:- For the existence of a market there
should be at least one commodity like Wheat,
vegetables, etc and the market is termed as wheat
market, vegetables market and so on.
CONT…

5. CONT…
• Perfect Competition:- According
to Prof. Coornot, market must
posses the characteristic of
perfect competition where in
buyers and sellers are free to
enter in the market.
• One Price:- In Perfect competition
between buyers and sellers. The
market area should have one
price only.

6. MARKET STRUCTURE:

7. PERFECT COMPETITION:
 A market form where there are many firms
that sell a certain homogenous product.
 A single firm can not influence the
market price.
 It is a hypothetical situation; it cannot exist in
real case scenario.
In this nobody can influence the prices, including
buyers and sellers
Example: Foreign exchange markets, Rural
agricultural markets.

8. Features of Perfect Competition:
 a large number of sellers and buyers
 having homogenous product and
 there is single price in the market
 Freedom of Entry and Exit; this will require low sunk costs.
 All firms are price takers, Therefore firm’s demand curve is
perfectly elastic.

9. Perfect Competition Curves:

10. MONOPOLY:
• A market situation where there
exists a single seller selling such a
good which has no close substitutes.
• They are the PRICE SETTERS.
• A single seller exists for a product.
i.e. 100% of market share.
• Example: Bangladesh railways,
Bangladesh post office

11. Features of Monopoly
• Single seller
• Large number of buyers
• No close substitutes
• Price discrimination
• No selling costs
• Relatively inelastic demand curve
• AR>MR
• AR&MR curves are downward sloping
• No free entry and exit of firms

12. Monopoly Curves