This document discusses market structure and defines the key types: perfect competition, monopoly, and monopolistic competition. Perfect competition has many small sellers and buyers, homogeneous products, free entry and exit, and transparent information. A monopoly has a single seller with a unique product and controls price and quantity. Monopolistic competition has multiple firms producing differentiated products facing downward sloping demand curves. The main differences are around the number of buyers and sellers, product homogeneity, and price uniformity across the types.

1. Market Structure
Student, Pune Institute of Business Management
Rajat.bang@yahoo.co.in
Rajat Bang
www.linkedin.com/in/rajat-bang

2. CONTENT
 Definition
 Things to be considered
 Types of Market Structure
 curves
 Differences

3. What is The market Structure?
Those characteristics of the market
that significantly affect the
behavior and interaction of buyers
and sellers.

4. Things To Be Considered
Number and size of sellers and buyers
Type of the product
Conditions of entry and exit
Transparency of information

5. Types Of Market Structure
1.Pure (perfect) Competition
2.Monopoly
3.Monopolistic Competition

6. Pure (perfect) Competition
 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

7. Curves in Perfect Competition
E
(Industry:– Price maker) (Firm:-Price takes)

8. Monopoly
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.

9. Curve in Monopoly
AC:-Average Cost
MC:-Marginal Cost

10. Monopolistic Competition
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

11. Curve in Monopolistic Competition

12. Vital Difference
References Perfect
Competiton
Monopoly Monopolistic
Competition
 Number of Seller
And Buyers
Large One seller, but large
number of buyers
Large
 Product Homogeneous Homogeneous/
Differentiated
Product
Differentiation
 Price Uniform Not uniform Not Uniform
 Number of Seller
And Buyers
Large One seller, but large
number of buyers
Large