Home | ARTS | Managerial Economics | Types of Market - Market Structure

Managerial Economics - Market Structure

Types of Market - Market Structure

   Posted On :  29.05.2018 01:46 am

The number and relative size of firms producing a good vary across industries.

Types of Market

Classification Of Market Structure Based On The Nature Of Competitor:
 
1.      Perfect market
 
2.      Imperfect market
 
The imperfect market in turn can be classified as
 
a.      Monopoly market
 
b.      Duopoly market
 
c.      Oligopoly market
 
d.     Monopolistic market/ competition
 
The number and relative size of firms producing a good vary across industries. Market structures range from perfect competition to monopoly. Most real-world firms are along the continuum of imperfect competition. Market structure affects market outcomes, ie., the price and quantity of goods supplied.


The above chart tells us that there are four types of imperfect competition existing in the present market environment. It is classified based on the number of buyers, sellers and competitors in the market. This chapter explains the price determination and profit maximization methods followed in these markets. Let us understand the meaning of each competition.
 
Monopoly market: a market with only one seller and a large number of buyers.
 
Monopolistic competition: a market in which firms can enter freely, each producing its own brand or version of a differentiated product.
 
Oligopoly market: market in which only a few firms compete with one another and entry by new firms is impeded/restricted.
 
Duopoly: market in which two firms compete with each other.
 
Monopsony: is a market with only one buyer, and a few/large sellers.

Tags : Managerial Economics - Market Structure
Last 30 days 611 views

OTHER SUGEST TOPIC