Commerce (/commerce/) > List of Commerce Articles (/commerce/articles/) > Forms of Market (/commerce/forms-of-market/)

(https://ad-tech.byjusweb.com/revive/www/delivery/cl.php?
KNOW MORE (https://ad-tech.byjusweb.com/revive/w
bannerid=216&zoneid=94&OXLCA=1&sig=89457e87aa7cfd5256f37cd910b4a92a5a4c86f0a2de5ddaa044ccacc842a583&dest=https%3A%2F%2Fbyjusex
online-coaching%3Futm_source%3Dbyjus.com%26utm_medium%3Dcommerce-topbanner%26utm_campaign%3Dlaw-online-coaching)

FORMS OF MARKET

Abstract:
The market is presented as a form that is for the cultural advantage of the general public. The market structure comprises different types of
markets, and the structures are portrayed by the nature and the level of competition that exists for the goods and services in the market. The forms
of the market, both for the products market and the factor market or the service market, is to be decided by the idea of rivalry that is winning in a
specific kind of market.

The Market structure is an expression that is resultant for the quality or the adequacy of the market competition that is winning in the market. There
are seven primary market structures:

Monopoly

Oligopoly

Perfect competition

Monopolistic competition

Monopsony

Oligopsony

Natural monopoly

Meaning of a Market:
A market can be characterised as where a couple of parties can meet, which will expedite the trading of products and services. The parties
involved in the market activities are the sellers and the buyers. A market is an actual structure like a retail outlet, where the dealers and purchasers
can meet eye to eye, or in a virtual structure like an internet-based market, where there is the truancy of direct, actual contact between the
purchasers and vendors.

Types of the market:

Monopoly:
A monopolistic market is a market formation with the qualities of a pure market. A pure monopoly can only exist when one provider gives a specific
service or a product to numerous customers. In a monopolistic market, the imposing business organisation, or the controlling organisation, has the
overall control of the entire market, so it sets the supply and price of its goods and services. For example, the Indian Railway, Google, Microsoft, and
Facebook.

Oligopoly:
An oligopoly is a market form with a few firms, none of which can hold the others back from having a critical impact. The fixation or concentration
proportion estimates the piece of the market share of the biggest firms. For example, commercial air travel, auto industries, cable television, etc.

Perfect competition:
Perfect competition is an absolute sort of market form wherein all end consumers and producers have complete and balanced data and no
exchange costs. There is an enormous number of makers and customers rivalling each other in this sort of environment. For example, agricultural
products like carrots, potatoes, and various grain products, the securities market, foreign exchange markets, and even online shopping websites,
etc.
Monopolistic competition:
Monopolistic competition portrays an industry where many firms offer their services and products that are comparative (however somewhat
flawed) substitutes. Obstructions or barriers to exit and entry in monopolistic competitive industries are low, and the choices made of any firm
don’t explicitly influence those of its rivals. The monopolistic competition is firmly identified with the business technique of brand separation and
differentiation. For example, hairdressers, restaurant businesses, hotels, and pubs.

Monopsony:
A monopsony is a market situation wherein there is just a single purchaser, the monopsonist. Just like a monopoly, a monopsony additionally has
an imperfect market condition. The contrast between a monopsony and a monopoly is basically in the distinction between the controlling business
elements. A solitary purchaser overwhelms a monopsonist market while a singular dealer controls a monopolised market. Monopsonists are
normal to regions where they supply most of the locale’s positions in the regional jobs. For example, a company that collects the entire labour of a
town. Like a sugar factory that recruits labourers from the entire town to extract sugar from sugarcane.

Oligopsony:
An oligopsony is a business opportunity for services and products that is influenced by a couple of huge purchasers. The centralisation of market
KNOW MORE (https://ad-tech.byjusweb.com/revive/w
demand is in only a couple of parties that gives each a generous control of its vendors and can adequately hold costs down. For example, the
supermarket industry is arising as an oligopsony with a worldwide reach.

Natural monopoly:
A natural monopoly is a kind of a monopoly that can exist normally because of the great start-up costs or incredible economies of scale of
directing a business in a particular industry which can bring about huge barriers to exit and entry for possible contenders. An organisation with a
natural monopoly may be the main supplier of a service or a product in an industry or geographic area. Normally, natural monopolies can emerge
in businesses that require the latest technology, raw materials, or similar factors to work. For example, the utility service industry is a natural
monopoly. It consists of supplying water, electricity, sewer services, and distribution of energy to towns and cities across the country.

COMMERCE Related Links

Swipe left
Working Capital Turnover (https://byjus.com/commerce/working-capital-turnover-
Directing In Management
Ratio ratio/)

What Is (https://byjus.com/co
Liquidity Ratio (https://byjus.com/commerce/liquidity-ratio/)
HDI indicators/)

Capital (https://byjus.com/commerce/difference-between-capital-reserve-and-
Bank Overdraft Meaning
Reserve revenue-reserve/)

Difference Between Goods And (https://byjus.com/commerce/difference-between-

Conservatism Concept
Services goods-and-services/)

Ledger Meaning (https://byjus.com/commerce/ledger-in-accounting/) Staffing Process

 KNOW MORE (https://ad-tech.byjusweb.com/revive/w

(https://ad-tech.byjusweb.com/revive/www/delivery/cl.php?
bannerid=137&zoneid=407&OXLCA=1&sig=672a25df74dc11427b9cb7fe0bf5a69e8c4d87adad809052a948041b4ac4da05&dest=https%3A%2F%2Flearn
register%26utm_campaign%3Dlogin)
 KNOW MORE (https://ad-tech.byjusweb.com/revive/w

(https://ad-tech.byjusweb.com/revive/www/delivery/cl.php?
bannerid=136&zoneid=314&sig=0ca8c27a10e6b029e9d1f1a5b36e295d7484e6b93eaac9c798f818e5a2a4fff3&dest=https%3A%2F%2Fbyjus.com%2Flear
Askdoubtweb%2526mx_Page_Category%253Dtn-
board%2526SourceIPAddress%253D%2526SourceReferrerURL%253D%2526mx_ad_Id%253Dundefined%2526mx_adset_id%253Dundefined%2526mx_p
Askdoubtweb%2526Website_URL%253Dhttps://byjus.com/commerce/forms-of-
market/_ENCODED%2526Platform%253Dwebsite_mobile%2526Lead_Magnet_Type%253Dask-a-
doubt%2526Device_Details%253DLinux%252C%2520Android%252C%2520Mobile%2526client_id%253D1f267a0cb39bfe566e0218659508cb1949be4bdea
 KNOW MORE (https://ad-tech.byjusweb.com/revive/w

(https://ad-tech.byjusweb.com/revive/www/delivery/cl.php?
bannerid=143&zoneid=95&OXLCA=1&sig=f24935f51f5d30c0bb80fa4c88af245613586364e04c7f9ef0e612c05e15c054&dest=https%3A%2F%2Fbit.ly%2F3O
 KNOW MORE (https://ad-tech.byjusweb.com/revive/w

(https://ad-tech.byjusweb.com/revive/www/delivery/cl.php?
bannerid=142&zoneid=410&OXLCA=1&sig=5f6dcaaa0d5e2b3b52f0feaa13fa991a2d298998378629a13aed9a92b7baa99e&dest=https%3A%2F%2Fbyjus.
class--sidebanner%26utm_campaign%3Dbst)

Join BYJU'S Learning Program

Name

Mobile Number Send OTP

City

Grade/Exam

Email Address
 Submit

Comments
Leave a Comment
Your Mobile number and Email id will not be published. Required fields are marked *
*

Mobile Number Send OTP

Type your message or doubt here...

KNOW MORE (https://ad-tech.byjusweb.com/revive/w

Post My Comment

COURSES EXAMS

CBSE (/cbse/) CAT Exam (/cat/exam-info/)

ICSE (/icse/) CAT 2023 (/cat/cat-2023/)

CAT (/cat/) GATE Exam (/gate/gate-exam/)

IAS (/ias/) GATE 2024 (/gate/gate-2024/)

JEE (/jee/) IAS Exam (/ias-exam/)

NEET (/neet/) UPSC Exam (/free-ias-prep/upsc-exam/)

Commerce (/commerce/) UPSC Syllabus (/ias/upsc-syllabus/)

JEE Main (/jee/jee-main/) UPSC 2023 (/free-ias-prep/upsc-2023/)

NCERT (/ncert/) Bank Exam (/bank-exam/)

JEE Advanced (/jee-advanced/) Government Exams (/govt-exams/)

UPSC Prelims 2022 Question Paper (/free-ias-prep/upsc-prelims-2022-question-papers-pdf/) Education News (/news/)

UPSC Prelims 2022 Answer Key (/free-ias-prep/upsc-prelims-answer-key-2022/)

CLASSES
IAS Coaching (/ias-coaching/)

CBSE Sample Papers (/cbse/cbse-sample-papers/) Kids Learning (/kids-learning/)

CBSE Question Papers (/cbse-study-material/cbse-previous-year-question-paper/) Class 1st - 3rd (/disney-byjus-early-learn/)

Class 4th - 5th (/class-4-5/)

Class 6th - 10th (/class-6-10/)

Class 11th - 12th (/class-11-12/)

BYJU'S Tuition Centre (/btc/)

EXAM PREPARATION COMPANY

Free CAT Prep (/free-cat-prep/) About Us (/about-us/)

Free IAS Prep (/free-ias-prep/) Contact Us (/contact-us/)

Maths (/maths/) Contact our Financial Partners (https://byjus.com/our-financial-

partners/)
Physics (/physics/)
Investors (/our-investors/)
Chemistry (/chemistry/)
Compliance (/compliance/)
Biology (/biology/)
Careers (/careers-at-byjus/)
JEE 2024 (/jee/jee-2024/)
BYJU'S in Media (/press/)
JEE Advanced 2023 Question Paper with Answers (/jee/jee-advanced-2023-question-paper/)
Social Initiative - Education for All (/educationforall/)
JEE Main Mock Test (/jee/jee-main-mock-test/)
BYJU'S APP (/byjus-the-learning-app/)
JEE Main 2023 Question Papers with Answers (/jee/jee-main-2023-question-papers/)
FAQ (/faq/)
JEE Main 2022 Question Papers with Answers (/jee/jee-main-2022-question-papers/)
JEE Advanced 2022 Question Paper with Answers (/jee/jee-advanced-2022-question-paper/) Students Stories - The Learning Tree (https://blog.byjus.com/the-
learning-tree/)
NEET 2023 Question Paper (/neet/neet-2023-question-paper/)
Support (/customer-care/)
NEET 2023 Question Paper Analysis (/neet/neet-2023-question-paper-analysis/)
Faces of BYJU'S – Life at BYJU'S (https://blog.byjus.com/life-at-
NEET 2022 Answer Key (/neet/neet-2022-answer-key/)
byjus/)

Blog (https://blog.byjus.com/)
RESOURCES
BYJU'S Give (/give/)
CAT College Predictor (/free-cat-prep/cat-college-predictor/)

Worksheets (/worksheets/)

BYJU'S Answer (/question-answer/)

DSSL (/about-dssl/)

Home Tuition (/home-tuition/)

All Products (https://shop.byjus.com)

Calculators (/calculators/)

Formulas (/formulas/)

FREE TEXTBOOK SOLUTIONS KNOW MORE (https://ad-tech.byjusweb.com/revive/w

STATE BOARDS

(/textbook-solutions/) Maharashtra (/msbshse/)

NCERT Solutions (/ncert-solutions/)
Gujarat (/gseb/)
NCERT Exemplar (/ncert-exemplar/)
Tamil Nadu (/tn-board/)
NCERT Solutions for Class 6 (/ncert-solutions-class-6/)
Karnataka (/kseeb/)
NCERT Solutions for Class 7 (/ncert-solutions-class-7/)
Kerala (/kbpe/)
NCERT Solutions for Class 8 (/ncert-solutions-class-8/)
Andhra Pradesh (/ap-board/)
NCERT Solutions for Class 9 (/ncert-solutions-class-9/)
Telangana (/telangana-board/)
NCERT Solutions for Class 10 (/ncert-solutions-class-10/)
Uttar Pradesh (/upmsp/)
NCERT Solutions for Class 11 (/ncert-solutions-class-11/)
Bihar (/bihar-board/)
NCERT Solutions for Class 11 English (/ncert-solutions-class-11-english/)
Rajasthan (/rajasthan-board/)
NCERT Solutions for Class 12 English (/ncert-solutions-class-12-english/)
Madhya Pradesh (/mp-board/)
NCERT Solutions for Class 12 (/ncert-solutions-class-12/)
West Bengal (/west-bengal-board/)
RD Sharma Solutions (/rd-sharma-solutions/)

RD Sharma Class 10 Solutions (/rd-sharma-class-10-solutions/)

ICSE Selina Solutions (/icse/selina-solutions/)

FOLLOW US

(https://www.facebook.com/byjuslearningapp/) (https://in.linkedin.com/company/byjus)

(https://www.kidsafeseal.com/certifiedproducts/byjus_india.html)

Disclaimer (/disclaimer/) Privacy Policy (/tnc_app/#privacydesc) Terms of Services (/tnc_app/#tncdesc) Sitemap (/sitemap.xml)

© 2024, BYJU'S. All rights reserved.