This is Presentation of Market Structure which describes about its characteristics - types in detail with its curve diagram

2. ‘Those characteristics of the market that
significantly affect the behavior and
interaction of buyers and sellers.’
According to J.C. Edwards, “ A market is
that mechanism by which buyers and
sellers are bought together. It is not
necessarily a fixed place.”

3. Number and size of sellers and buyers
Type of the product
Conditions of entry and exit
Transparency of information

4. (i) An Area:
In economics, a market does not mean a particular place but the
whole region where sellers and buyers of a product ate spread.
Modem modes of communication and transport have made the
market area for a product very wide.
(ii) One Commodity:
In economics, a market is not related to a place but to a particular
product. Hence, there are separate markets for various
commodities. For example, there are separate markets for
clothes, grains, jewellery, etc.

5. (iii) Buyers and Sellers:
The presence of buyers and sellers is necessary for the sale
and purchase of a product in the market.
(iv) Free Competition:
There should be free competition among buyers and sellers
in the market. This competition is in relation to the price
determination of a product among buyers and sellers.
(v) One Price:
The price of a product is the same in the market because of
free competition among buyers and sellers.

7. Perfectly
Competitive
• Less market
power
• Price takers
• Goods are
homogenous
• Free entry and
exit
• Perfect
Information
Monopolistic
Competition
• Many firms
• Free entry and
exit
• Differentiated
but highly
substitutable
product
Oligopoly
• Small number
of firms
• Product
differentiation
may or may
not exist
• Barriers to
entry
Monopoly
• There is market
power
• Single seller
• One product
(limited or no
good
substitutes)
• Barriers to
entry

8. Many and small sellers, so that no one can affect
the market
Homogeneous product
Free entry to and exit from the industry
Transparent and free information

10. Multiple firms produce similar products
Firms face down sloping demand curves
Profit maximization occurs where MC=MR
In the limit, firms compete away economic profits

12. 1. A single seller: the firm and industry are
synonymous.
2. Unique product: no close substitutes for the firm’s
product.
3. The firm is the price maker: the firm has
considerable control over the price because it can
control the quantity supplied.
4. Entry or exit is blocked.

13. AC:-Average Cost
MC:-Marginal Cost

14.  Few large firms: each must consider its rivals’
reactions in response to its decisions about prices,
output, and advertising.
 Standardized or differentiated products
 Entry is hard: economies of scale, huge capital
investment may be the barriers to enter.

16. This Presentation was prepared by
MEETSHAH
Mail id : meet.shah134@gmail.com