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Ch 5
Market
Introduction


What is market?

Types of Market
1. Perfectly Competition
Large No.of buyers and Large no. of
Seller
2. Monopolist Competition
Only One Sellaer
3. Oligopoly competition
Few seller many Buyers
4. Monopolistic competition
Many seller and each offers slightly
different product
Definition of Perfect Competition
According to, Prof. Marshall
The more nearly perfect a market is, the
stronger is the tendency for the same price
to be paid for the same thing at the same
time in all parts of the market.
FMCG Goods & Garment Industry ,Mobile
Industry is example of Perfect Competition

Characteristics
Large No. of Sellers & Buyers
Homogeneous Product
Free Entry & Exist
Perfect Knowledge of Buyer & Sellers
Independence of Decision Making.
Absence of Selling and Transportation
Costs.

DEFINITION OF MONOPOLY

According to, Prof. Thomas
Broadly, the term Monopoly is used to cover
any effective price control, whether of supply
or demand of services or goods; narrowly it is
used to mean a combination of manufacturers
or merchants to control the supply price of
commodities or services.
Rail Transportation is Example Of Monopoly

Characteristics of Monopoly Market
Single Producer / Seller
No Competition
No Substitute
Restricted Entry
Homogeneous Product
Industry & Firm both are same

Definition of Monopolistic competition
The great majority of imperfectly competitive
producers in the real world produce goods,
which are neither completely different nor
completely same.
It means there serving slightly differ products.
Example market for toothpaste, cosmetics,
watches

Large number Firm
Product Differentiation
Selling cost
Close to substitute
Free Entry
Characteristics of Monopolistic Market

DEFINITION OF OLIGOPOLY

According to, Mrs. John Robinson
Oligopoly is market situation in between
monopoly and perfect competition in which
the number of sellers is more than one but is
not so large that the market price is not
influenced by any one of them.
Example selling of petrol by Hindustan
Petroleum (HP) & IBP.


Few seller
Few , many , or limited buyers
Homogeneous/Differentiate product
Interdependence Sellers
Cut throat competition
Uniformity Price



Characteristics of Oligopoly Market

Kinky Demand curve

Demand
price
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