This document summarizes different market structures: - Perfect competition has many small firms, identical products, free entry and exit, and firms are price takers. - Monopoly has a single seller, high barriers to entry, and the firm can influence the market price. - Monopolistic competition is between perfect competition and monopoly with many firms selling differentiated goods. - Oligopoly has a few large firms producing either differentiated or similar products, where each firm is influenced by competitors.

1. Presentation On Market
Structure

2. Market
• In economics, market means a social system
through which the sellers and purchasers of a
commodity or a service (or a group of
commodities and services) can interact with
each other.
• Market does not refers to a place or a location.
• It refers to an institutional relationship between
purchaser and the seller.
• It links buyer and the seller.

3. Market Structure
Market
Structure
Imperfect
Competition
Monopolistic
competition
Oligopoly
Perfect
Competition
Monopoly

4. Market Structure

5. Perfect Competition
• Perfect competition is a market structure in which
number of sellers sell a homogenous product at
uniform rate.
• A market is said to be Perfectly Competitive if it
satisfies the following features.
a. Large number of buyers and sellers
b. Firm under perfect competition is a price taker not
a price maker.
c. Homogenous product
d. Price is uniform
e. Free entry and exit

6. Perfect Competition
f. Profit maximization
g. No government regulation
h. Perfect mobility of factors: resources can move
freely from one firm to another without any
restriction.
i. Perfect knowledge
j. Absence of transportation cost
k. Perfectly elastic demand curve

7. Perfectly Elastic Demand Curve

8. Crux Of Perfect Competition

10. Monopoly
• Monopoly refers to the market situation where there
is one seller and there is no close substitute to the
commodities sold by the seller.
• Seller has full control over the supply of that
commodity.
• One seller, so the monopoly firm and an industry are
the same.
• No close substitute
• Restriction on entry and exit of new firm
• Price maker
• Possibility of price discrimination

11. Monopoly Features
Price Discrimination Price Maker

13. Monopolistic Competition
• It is that form of market in which there are large
numbers of sellers selling differentiated
products which are similar in nature but not
homogenous.
• This are closely related goods with a little
difference in Odour, size and shape.
• This was developed by an American Economist
“Chamberline”.
• It is a combination of Perfect Competition and
Monopoly.

14. Examples Of Monopolistic Competition

15. Oligopoly
• Oligopoly is a market situation in which there
are few firms producing either differential goods
or closely differentiated goods.
• The number of firms is so small that every seller
is affected by the activities of the others.
• Oligopoly is of two types i.e. pure oligopoly and
differentiated oligopoly
• Control over supply, lack of uniformity of size of
firm, price rigidity, intense competition are
other features of oligopoly market.