The document discusses different market structures, including perfect competition and monopoly. It provides examples of each. Perfect competition is exemplified by the credit card market, where many banks offer identical credit cards. Monopoly is exemplified by Indian Railways, which is the sole provider of rail transport services in India and can set prices without competition. The document outlines the key features of perfect competition and monopoly markets, such as number of sellers/buyers and barriers to entry.

1. INTRODUCTION

2. Meaning and Definition
“MARKET is an arrangement
that facilitates the buying
and selling of the product,
service and factor of
production or future
commitment”.

3. INTRODUCTION OF MARKET
STRUCTURE
• In economics, Market Structure is the number of firms
producing identical products which are homogeneous.
• Market Structure refers to the number and distribution size of
buyers and sellers in markets of particular good and services.
Market structure divided to perfect competition,
monopolistic, monopoly, and oligopoly.

4. Types of Market
1. Perfect Competition
2. Monopoly
3. Imperfect competition
A) Oligopoly
B) Monopolistic Competition

5. 1.Perfect Competition
According to Boulding, “the competitive market may be
defend as a large number of buyers and sellers all engaged
in the purchase and sale of identically similar commodity,
who are in close contact with one another and who buy and
sell freely among themselves”.

6. Features of Perfect competition
• 1. Large number of buyers and sellers
• 2. Homogeneous product
• 3. Free entry and exit
• 4. Perfect knowledge
• 5. Demand curve of the firm

7. Example of perfect competition
• Credit Cards
A credit card is a small plastic card issued to
users as a system of payment.
Credit cards are issued by the banks which
allows a card holder to purchase goods on
credit.
All banks in collaboration with Visa or Master
Card provides the facility.

8. Credit card
Credit cards are the classic example of perfect
competition.
• There are total 88 banks providing credit
cards.

9. • SBI has the highest
share at 25%
• Sellers and buyers
are equally divided.
• Perfect
Competition
Others
3%
Bank of
Maharashtra
2%
HSBC Bank
2%
Kotak
Mahindra Bank
3%
Standard
Chartered Bank
9%
AXIS BANK
11%
Barclays
4%
Citi Bank
HDFC Bank 7%
21%
ICICI Bank
12%
State Bank of
India
25%

10. MONOPOLY
• Monopoly is an extreme form of market structure. The word
monopoly is derived from two Greek words-Mono and Poly.
Mono means single and Poly means 'seller'. Thus monopoly
means single seller.

11. Features of Monopoly
• 1. One seller and large number of buyers
• 2. No close substitute
• 3. Strong barriers to the entry into the
industry exist
• 4. Price Maker
• 5. Nature of demand curve

12. Types of Monopoly
• Private monopoly:
• Public monopoly
• Absolute monopoly:
• Imperfect monopoly:
• Simple or single monopoly:
• Discriminative monopoly:
• Legal monopoly:
• Natural monopoly:
• Technological monopoly:
• Joint Monopoly:

13. Example of Monopoly
Indian Railway
• State owned company
• Monopoly of country’s rail transport
• April 16, 1853, first passenger train introduced between
Bombay & Thana.
• Indian Railways having more than 64000 Kilometres of track
and 6909 stations.
• It has the world’s 4th largest railway network after that of
United States, Russia and China. It carries over 20 million
passengers and 2 million tons of freight daily.

14. Indian Railway
• It is one of the world’s largest commercial employers
with more than 1.6 million employees.
• Indian railways has a position, which is not possible
in perfectly competitive markets, where it can charge
different price to different group of consumers for an
identical product, even though the cost of each such
saleable unit remains same.

15. Conclusion

16. Thank You