This document defines different types of market structures: - Perfect competition has many small firms, homogeneous products, free entry and exit, and firms that are price-takers. - Monopoly has a single seller of a unique product without close substitutes that can influence price. - Monopolistic competition features many small differentiated product sellers with some product differentiation and freedom of entry and exit. - Oligopoly has a market dominated by a small number of interdependent firms that closely watch each other's actions.

1. SUBJECT : MANAGERIAL ECONOMICS
TOPIC : TYPES OF MARKET STRUCTURE

2. Definition of Market
 The term “Market “ refers to a particular place where
goods are purchased and sold.
 According to Prof. R. Chapman, "The term market
refers not necessarily to a place but always to a
commodity and the buyers and sellers who are in direct
competition with one another”.
BUYERS SELLERSMARKET

3. What is the market structure?
Perfect
competition
Oligopoly
Monopoly
Monopolistic
competition
The firm in
competitive markets
Imperfect competition

4. Perfect competition
 No barriers to entry (legal, technological, or
resource)
 No investment lag - Immediate implementation of
production decisions)
 Homogeneous goals of the owners and managerial
staff
 Profit maximiser
 Identical product
 Price-taker
 Produces a homogeneous product
 Perfect information

5. According to D.Salvatore, “Monopoly is the form of
market organization in which there is a single firm
selling a commodity for which there are no close
substitutes.”
 Single Producer and large number of Buyers.
 Barriers to Entry
 Full Control over Price
 Price Discrimination
Monopoly

6. According to J.S.Bains, “Monopolistic competition
is market structure where there is a long number of
small sellers, selling differentiated but close substitute
products. ”
 Large number of Sellers.
 Product differentiation.
 Freedom from Entry or Exit.
 Independent behaviour.
Monopolistic competition

7. Оligopoly
According to Mansfield, “Oligopoly is a market
structure characterised by a small number of firms and
a great deal of interdependence.”
 Few Sellers.
 Each firm carefully watches decisions of competitors
and often plans anti-strategies.
 Importance of Advertising and Selling Costs.
 Interdependence.

8. THANK YOU