MARKETS

Name : Sneha Bhor

 Mahima Gotekar
 Bubli Yadav
Introduction :
In common language the term market means a
specific place where buyers and sellers of a
commodity meet and exchange their goods.
But in economics, market does not necessarily
mean a place,but it is an arrangement
through which buyers and sellers come in
contact with each other directly or indirectly
and exchange of goods takes place among
them.
Types of Market :
Perfect competition

Monopoly

Oligopoly

Monopolistic competition
Perfect Competition
• A perfectly competitive market is one which has
large number of buyers and sellers of a homogeneous
product.

• This indicates that the number of sellers is large.

• For example:- Advertising,etc.

Features of Perfect
Competition
• Large number of buyers and sellers
• Free entry and exit
• Homogeneous product
• Single price
• Perfect knowledge
Monopoly
• In Monopoly a market structure characterised
by a single seller, selling a unique product
in the market.

• The seller face no competition

• For example- electricity,telecommunication,etc.

Features of Monopoly
• Single seller
• No close substitute
• Price maker
• No distinction between firm and the industry
• Profit maximization
Oligopoly- Competition
Amongst the few
• It refers to a market situation in which there are
a few firm selling homogeneous or
differentiated product
• Example- Cement, Steel, Aluminium
Features of Oligopoly
The main features of Oligopoly are

• Few Firms
• Interdependence
• Non price competition
• Barriers to entry of firm
Monopolistic
Competition
Monopoly + Competition = Monopolistic
• It refers to the market situation in which there are large
number of firms which sells closely but
DIFFERENTIATED PRODUCT

• It has many buyers and sellers

• For example-
colgate(Pepsudent,Neem,Babool),Cycle,Soap,Tea.
Features of Monopolistic
Competition
• Large numbers of sellers
• Product Differentiations
• Selling costs
• Freedom to entry and exit
• pricing Decision Are these mascaras different?
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