This document discusses different market structures: perfect competition, imperfect competition (monopolistic competition, oligopoly, monopoly). Perfect competition has many small buyers and sellers of homogeneous products with perfect information. Imperfect competition has some but not all features of perfect competition, such as product differentiation. Monopolistic competition has many firms selling differentiated products. Oligopoly has a few dominant firms selling homogeneous or differentiated products. Monopoly has a single seller of unique products without close substitutes. The document outlines key characteristics of each market structure and how they impact prices, competition, and market outcomes compared to perfect competition.

1. THE STRUCTURE OF A MARKET AND THE SYSTEM THAT COMPRISE IT
Presented by:- Suman Saha-
009,
BBA, SEC-A, SEMESTER
-II

2. INTRODUCTION
A specific place for purchasing and selling
of goods is termed as market, this term
has broader outlook in economics where
market refers to whole area where the
buyers and sellers of the products are
spread and not limited to a specific place.
 How to sellers a market compete both
perfectly and imperfectly.
 Understanding the relationship between
different market structure.
 How to they compare & contrast with one
another.
 Able to accurately identify.

3. IMPORTANCE OF MARKET
STRUCTURE
It affects market outcomes through its impact on
the motivations, opportunities and decisions of
economic actors participating in the market.
Market structure analysis is concerned with the
effect of competition upon economic behaviour.
It attempts to explain and predict market
outcomes through the extent of market
competitions.

4. PERFECT COMPETITON MARKET
STRUCTURE
A market which consists of a large
number of buyers and sellers who
are involved in buying and selling
homogeneous products with perfect
knowledge of the market is called
perfectly competitive market.
 Ex: Fish Market, Vegetable Market
and Fruits Market, Gold, Oil, stock
market.

5. CHARATERISTIC OF PERFECT
COMPETITION
 Large number of buyer and sellers.
 The product is homogeneous.
 Free and exit.
 No government regulation.
 Perfect knowledge

6. IMPERFECT COMPETITION MARKET
STRUCTURE
In economic theory, it is a type of
market structure showing some but
not all feature of competitive market.
Forms of imperfect competition
include, monopolistic competition:
A situation In which many firms
with slightly different product compete.
Ex :- Included Monopoly,
Monopolistic competition, oligopoly.

7. CHARACTERISTICS OF IMPERFECT
COMPETITION
 Large number of sellers and buyers.
 Product differentiation.
 Selling costs
 Free Entry and exit of Firms.
 Price- makers

8. MONOPOLY MARKET STRUCTURE
A market situation where there
is only for others to entry,
product having no close
substitute and no other firm
produce an product is called
monopoly.
 Ex :- Microsoft and Windows,
DeBeers.

9. CHARACTERISTIC OF MONOPOLY
 Single seller.
 Restricted entry.
 Homogeneous product.
 Full control over price.
 Price discrimination

10. MONOPOLISTIC COMPETITION MARKET
STRUCTURE
A situation in the market where
differentials products are sold by
many firms that can’t have any
influence but can be perceptible
other seller price output policy.
The competition among huge
number of seller that produce close
substitutes for each other which are
not perfect substitutes.
Ex : - jeans, watch, shoes

11. CHARACTERISTIC OF MONOPOLISTIC
COMPETITION
 Large number of sellers.
 Product differentiation.
 Freedom of entry or exit.
 Independent behaviour.

12. Oligopoly market structure
In which there are a few sellers
engaged in selling either
homogeneous or differentiated
products.
A small market of rival firms dominate
the industry, the products which are
sold the oligopolistic market but not
perfect substitute products.
Ex :- Airline Industry, Breakfast
Cereal, Drinks.

13. CHARACTERISTIC OF OLIGOPOLY
 There are few sellers selling either homogeneous or
differentiated product.
 There is high degree of interdependence on the part
of the firms.
 There is high degree of cross elasticities of demand
for their products.
 There exists price rigidity. It means each firms sticks
to its own price

14. BENEFITS OF MARKET STRUCTURE
 There is most efficient use of resources, due to a
high degree of competition .
 The consumer benefits.
 Price is usually equal to marginal cost.
 Normal profit is made in the long run (i.e. over time)
 Firms operate at Maximum efficiency.