Makhanlal Chaturvedi National University of

Journalism and Communication

Project for First semester
TOPIC

MARKET
Submitted by Submitted To
Shravan sisodiya Mrs Aarti Joshi Mam
1. What is Market ?
Market refers to the whole region where
buyers and sellers of a commodity are in
contact with each other to affect purchase and
sale of a commodity.
••The essential elements of the market••

1. Area
2. Buyers and seller
3. Commodity
4. Competition
 Need of market
1.For fulfillment of consumer needs.
2.To meet demand and supply exist in
an area
3.For the improvement of life of the society.
4.To provide different types of products on
same place.
5.The basic need of market is for the of
exchange good and services.
 Classification of market

1. On the basis of commodity and services

2. On the basis of area

3. On the basis of time

4. On the basis of legality

5. On the basis of quantity

6.On the basis of competition

1. On the basis of commodity and services
1.1 commodity market :- 1.2 Factor market :- factor
A commodity market is a place market is a place where
where produced goods or production factors are
consumption goods are bought and purchased and sold.
sold.
2. On the basis of area
2.1 Local Market :- The area covered 2.2 Regional Markets: These
by the market is limited to some group markets cover a wider are than
of villages which are nearby or close to local markets like a district, or a
each other.Perishable commodities cluster of few smaller states
like vegetable, fruits, fish, milk are
being transacted

2.4 International Market or World

Market: World or international
market is one where the buyers and
sellers of goods are from different
countries i.e involvement of buyers
and sellers beyond the boundaries of a
nation
2.3 National Market: a certain
type of commodities has demand
throughout the country. Hence it
is called as a national market
 3. On the basis of time
3.1 Very Short Period :- Very short period refers to
the type of competitive market in which the supply of
commodities cannot be changed at all. So in a very
short period, the market supply is perfectly inelastic.
The price of the commodity depends on the demand for
the product alone. The perishable commodities like
flowers are the best example
3.2 Short-period:-Short period refers to that
period in which supply can be adjusted to a
limited extent by varying the variable factors
alone. The short period supply curve is relatively
elastic. The short period price is determined by
the interaction of the short-run supply and
demand curves
3. 3 long term market :-In long-term market,
adequate time can be found for supply of
products according to demand. New machines
and equipment can be installed for additional
production to meet demand
3.4  Very Long-term Market Or Secular
Market :- In secular market, produces can
get adequate time to use new technology in
production process and bring new changes
in products. They become able to produce
and supply goods according to changed
needs, interest, fashion etc. of customers.
Market research becomes helpful in doing
so
 4. On the basis of legality

4.1 Legal Market:- A market
where legal transactions of
goods and services take place
between buyers and sellers. It is
recognized by the government. It
is also called a fair market .
4.2 illegal Market:- A market where high
prices are charged and it happens when the
goods are in short supply.
Businessmen and traders earn profits by
indulging in black marketing, smuggling,
and hoarding .
The Hong Kong market is an illegal market.
 5. On the basis of quantity
5.1 Wholesale Market :- In 5.2 Retail Market:- In retail
wholesale market goods are market the goods are
supplied in bulk quantity to purchased from producer or
dealers/ retailers. The goods wholesales and sold to
and services are not sold to customers in small quantities by
customers directly. retailers.
 6.On the basis of competition

Monopoly
Perfect
competitio
Type of
Duopoly
competition
Imperfect
competition
Oligopoly

Monopolistic
competition
 Perfect Competition
Perfect Competition refers to a market situation where
there are very large number of buyers and sellers dealing
in a homogeneous product at a price fixed by the market.
Note :- In the perfectly Example:- market of agricultural goods
like WHEAT , RICE and SOYABEEN.
competitive market, sellers sell
a homogeneous product at a
single uniform price. The price
is not determined by a
particular firm but by the
industry.

Rs . 20 per kg
 Features of perfect competition
1. Very large number of buyers and sellers .
2. homogeneous product
3. freedom of entry and exit .
4. perfect knowledge among buyers and sellers .
5. absence of selling cost :- selling cost refers to the cost of advertisement of
the product . In perfect competition, there are no selling costs because of
perfect knowledge amongst buyers and sellers.
6. Perfect Mobility of Factors of Production: The factors of production (land,
labour, capital and entrepreneurship) are perfectly mobile. There is no
geographical or occupational restriction on their movement. The factors
are free to move to the industry in which they get the best price.
 Monopoly
Monopoly refers to a market situation where there is a single
seller selling a product whichhas no close substitutes. For
example Railways in India , microsoft, ITC limited ,META.
 Features of Monopoly
1. Single seller
2. no close substitues
3. Restriction on entry and exit:- there exits strong barriers to entry of new
firms and exit of existing firms .these barriers may be due to legal restriction
like licencing or patent rights or due to created by the firm in the form of
cartel.
4. price determination:- A monopolist may charge different prices for his
product from different sets of consumers at the same time. It is known as
'Price Discrimination‘.
5. Price Maker: In case of monopoly, firm and industry are one and the same
thing. So, firm has complete control over the industry output. As a result,
monopolist is a price-maker and fixes its own price. It can influence the
market price by changing the supply of the product.
 Duopoly
A duopoly is a situation where two companies together own
all, or nearly all, of the market for a given product or service, In
this market, two brands can collude to set prices or quantities
and make customers pay more money. Duopoly is a market
structure some how similar to oligopoly.
examples :-
 Features of duopoly

1. companies in a duopoly take different measures to develop brand loyalty

and implement low-pricing strategies, it’s hard for new firms to enter.
2. sales volume and revenues are good enough because there is only one
competitor and the barriers to entry are high.
3. players can collude to determine a price or output or maintain a
competitive environment for significant profits.
4. If one company makes its product cheaper, the other will follow.
5. This is necessary to attract consumers and encourage them to purchase.
 Oligopoly
'oligi' means few and 'polein' means to sell.
Oligopoly is a market structure in which there are
only a few sellers (but more than two)
Oligopoly refers to a market situation in which there
are few firms selling homogeneous or differentiated
products. Examples:-
 Features of oligopoly
1. Few firms
2. interdependence :- a change in output or price by one firm evokes relation from
other firms operating in the market .
3. non-price competition:- firms try to avoid price competition for the fear of price
war ,Firms use other methods like advertising, better services to customers, etc.
to compete with each other.
4. barriers to entry of firms :-Patents, requirement of large capital, control over
crucial raw materials, etc, are some of the reasons.
5. Group behaviour :- Instead of independent price and output strategy, oligopoly
firms prefer group decisions that will protect the interest of all the firms. Group
behaviour means that firms tend to behave as if they were a single firm even
though individually they retain their independence.
 Monopolistic competition
Monopolistic Competition refers to a market situation in
which there are large number of firms which sell closely
related but differentiated products.
 Features of Monopolistic competition

1. Large number of sellers .

2. product differentiation :-product differentiation refers to differentiating the
products on the basis of brand, size, colour, shape etc .
3. freedom of entry and exit :-Free entry and exit of firms means that there are no
barriers before the firm for entering into the industry and leaving the industry.
4. non–price competition:-Non-Price Competition refers to competing with other
firms by offering free gifts, making favourable credit terms, etc, without changing
prices of their own products.
5. Price decision :- A firm under monopolistic competition is neither a price taker nor
a price-maker. However, by producing a unique product or establishing a particular
reputation, each firm has partial control over the price.
For better understanding of monopolistic competition discuss the given picture