The document discusses different types of market structures that exist, including perfect competition, imperfect competition, monopoly, monopolistic competition, and oligopoly. It provides characteristics and examples of each type of market structure. Perfect competition is defined by many small sellers and buyers, freedom of entry and exit, uniform products, and perfect consumer information. Imperfect competition includes product differentiation and non-price competition. A monopoly is characterized by a single seller, high barriers to entry, and no substitutes. Monopolistic competition involves differentiation with many sellers. Oligopoly has few dominant sellers that interact strategically. The document emphasizes the importance for businesses to understand the market structure they operate within to make pricing and production decisions.

1. Market
Structures
Presentation By:
Sadiya Tasleem

2. MARKET
Some definition of Market according to
Economists are;
• “By a market, economist mean any organization whereby buyers
and sellers of a good are keep in close touch with each other.”
-Stonier and Hague
• “The market, in economics, is simply the network of dealings in
any factor or product between buyers and sellers.”
-Cairn Cross
• “The term market refers not to a place but a commodity or
commodities of buyers and sellers of the same who are in direct
competition with each other.” -Chapman
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3. There are a variety of different market
systems that exist, depending on the
industry and the companies within that
industry. It is important for small
business owners to understand what
type of market system they are operating
in when making pricing and production
decisions, or when determining whether
to enter or leave a particular industry.
Market System

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Types of
Market System
1. PERFECT COMPETITION
2. IMPERFECT COMPETITION
3. MONOPOLY
4. MONOPOLISTIC
5. OLIGOPOLY

5. Perfect
Competition
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6. Characteristic of Perfect Competition
There are five main characteristic:
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 Large number of buyer and sellers.
 Freedom of entry and exit.
 Limited share in the market.
 Perfect mobility among factors.
 Uniform price

7. Price
Determination
under Perfect
Competition
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8. Imperfect
Competition
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9. Characteristic of Imperfect
Competition
There are four main characteristic:
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 Large number of buyer and sellers.
 Product differentiation
 Expenditure on advertisement and other selling cost
 Non-price competition

10. 10
Imperfect Market.

11. Monopoly
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12. Characteristic of Monopoly
There are four main characteristic:
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 Single seller of a product.
 No Close Substitution.
 Large number of buyers.
 No competition

13. Price
Determination
under Monopoly
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14. Monopolistic
Competition
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15. Characteristic of Monopolistic
Competition
There are five main characteristic:
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 Large number of buyer and sellers.
 Freedom of entry and exit.
 Product Differentiation.
 Lack of Perfect Knowledge
 Less Mobility

16. 16
Short Run Equilibrium with
Monopolistic Competition.

17. Oligopoly
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18. Characteristic of Oligopoly
There are five main characteristic:
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 Fewer number of buyer and sellers.
 Freedom of entry and exit.
 Lack of Uniformity.
 Existence of Price Rigidity.
 No Unique Pattern of Pricing Behaviour

19. 19
Short Run Equilibrium with
Oligopoly.

20. THANK YOU!