Subject :- Engineering Economics and Management Here u can learn about market like perfectly market Monopoly market , oligopoly market National Income like GDP , GNP , NNP , PI , DI . In basic language u can easily understand PPT. If u like this PPT this my motive. Thanks for Seeing this PPT.

1. MARKET & NATIONAL INCOME
Prepared By Deep

2. MARKET

3. A market is one of the many varieties of systems,
institutions, procedures, social relations and infrastructures where
by parties engage in exchange.
While parties may exchange goods and services by
barter, most markets rely on sellers offering their goods or
services (including labor) in exchange for money from buyers. It
can be said that a market is the process by which the prices of
goods and services are established.
Markets facilitate trade and enables the distribution
and allocation of resources in a society. Markets allow any trade-
able item to be evaluated and priced.
MEANING

4. MARKET
According to prof. R.P.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.”
According to A.A.Cournot, “Economists understand by
the term market, not any particular place in which things are
brought and sold but the whole of any region in which buyers and
sellers are in such free intercourse with one another that the price
of the same good tend to equality, easily and quickly.”
According to Benham, “Any area over which buyers
and sellers are in such close touch with one another, either directly
or through dealers, that the prices obtainable in one part of the
market affect the prices paid on other part.”

5. TYPES OF MARKETS

6. PERFECT
COMPETITION

7. Its not a type of market but is a model of market proposed by
Alfred Marshall in his Principles of Economics.
In economic theory, perfect competition (sometimes called
pure competition) describes markets such that no participants are
large enough to have the market power to set the price of a
homogeneous product. Because the conditions for perfect
competition are strict, there are few if any perfectly competitive
markets.
A primary purpose of perfect competition is to illustrate
perfection, resource allocation & to provide a benchmark for
comparison with real world market structures.

8. CHARACTERISTICS
Generally, a perfectly competitive market exists when every
participant is a "price taker", and no participant influences the
price of the product it buys or sells. Specific characteristics may
include:
1. A large number buyers andsellers
2. No barriers of entry and exit
3. Perfect factor mobility
4. Perfect information
5. Zero transaction costs
6. Profit maximization
7.Homogeneous products
8. No externalities
9. No selling costs

9. in the short run, perfectly competitive markets are not productively
efficient as output will not occur where marginal cost is equal to
average cost (mc = ac). they are allocative efficient, as output will
always occur where marginal cost is equal to marginal revenue
(mc = mr).
In the long run, perfectly competitive markets are both
allocative and productively efficient.

10. MONOPOLY

11. Monopoly is a market situation where there is only a single
seller with complete control OVER AN INDUSTRY.
Features of Monopoly
• Single seller
• Price discrimination
• No close substitutes
• Unique product
• Entry is restricted
• Price maker

12. MONOPOLISTI
C
COMPETITION

13. Monopolistic competition refers to a market situation where
there are various firms selling a variety of products.
In simple words , “ there is competition which is keen , though
not perfect ,among many firms making very similar products ”.
MEANING

14. In the market , there are number of sellers, who
produce a close substitute products and services .
Every product in the market has some minor quality
differntiation .
There not any control for entry or exit for competitor .
It means number of companies may increases or
decreases at any time.
All company has independent behaviour.
There is differentiation in the quality of all products; all
product can be differentiating from eachother.
Feature of Monopolistic Competition

15. Various types of products are sell-out in different
geographical area by different companies to different
customers.
Normally competition among firm arises due to quality
and apperence of the product.
Due to specific quality and special apperence for the product
or service , the company has some control over the prices for
specific customers or for specific geographic location .

16. OLIGOPOLY MARKET

17. Oligopoly is situation where a few giant companies are
competing against each other.
there is independence in the decision – making of various
points like price of the product , major ingredients of the
product and other promotional strategies .
for example , any policy change in telecommunication or
networking company like Vodafone , may direct effect to
other companies like airtel or idea who are operating in the
same industry.

18. there are very few large companies ; hence ,they are mainly
interdependence .
Since , due to lesser competitors, they try to capture the market
but their advertising and promotional scheme .
Due to interdependence of the firm , group behaviour can be
observed .
Since , there are very few competitors in the market; they can
create a significant effect on customer’s mind.
Characteristics of Oligopoly

19. Due to lesser competitors , to create impart on customer’s mind
the constantly apply various marketing strategy .
All companies always apply various marketing strategy for
their profit maximization they very well aware about the nature of
market.
On basis of nature of product , oligopoly market may be defined
into two parts as identical product oligopoly and differential
product oligopoly .

20. NATIONAL INCOME

21. NATIONALINCOME
National income is the result of all economist activities of the
nation in terms of money. It is the most important macroeconomics
variable which determines the business level and environment of
country.
National Income may be defined as aggregate factor, income
i.e., earning of labour and poverty , which arise the current
productionof goods and services by the NationIncome.

22. NATIONALINCOME= NATIONAL
PRODUCT= NATIONAL EXPENDITURE
Sumofvaluesofallfinishedproductsandservices produced.
Sum of allincomes in cash and kind,accuringdue to production
in theyear
Sum of consumers expendiure,net investment expenditure
and government expenditureof all goods andservices

23. TYPESOFNATIONAL INCOME
(1) GNP- Gross NationalProduct
(2) GDP- Gross DomesticProduct
(3) NNP- Net NationalProduct
(4) NDP- NationalDomesticProduct
(5) PersonalIncome
(6) DisposableIncome

24. IT HAS SEVEN CONCEPT.
1) G.D.P.
2) N.D.P.
3) G.N.P.
4) N.N.P.
5) Per Capita Income
6) P.I.
7) D.I.

25. G.D.P.
It is short form of “GROSS DOMESTIC PRODUCT”.
GROSS means “Value of all Goods and services produced within
the country”.
Domestic means
Not producing or selling out of the country
OR
Don’t add income fromabroad.
Example : Suppose factory produced goods with the help of so
many things like labour, machinery, land and building etc…
But that doesn't mean when the production of goods is finalised
by factory charges on each and everything used to produced good.
Simplly intermidiate goods like labour, machinery whatever we use to
produced goods, we exclude the intermediate (labour, machinery etc..).

26. N.D.P.
GDP = Gross Domestic Product
NDP = Net Domestic Product
In GDP & NDP only difference is one word Gross and Net.
Gross means “not adding intermediate goods".So,
NDP = GDP + Intermediate Goods(labour, machinery, land
etc..)

27. G.N.P.
GDP = Gross Domestic Product
GNP = Gross National Product
In GDP & GNP only difference is one word Domestic and
National.
Domestic means
Not producing or selling out of the country
OR
Don’t add income from abroad. So,
GNP = GDP +Income Arising From Abroad (NFIA)

28. PERSONAL INCOME
Personal Income is the sum of all income, actually
received by all households during a given year.
Personsl Income =All Income – (Social Security +Medicare +
Income tax) All three things deduction by IRS ( Internal
Revenue Service )

29. DISPOSABLE INCOME
Out of Personal Income, share paid to government in the
form of personal taxes.
Disposable Income =Personal Income – Personal Taxes

30. THANK
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