Question

I need one full page about market structures

Answer 1

The market structure refers to all such systems or arrangements that bring the buyers and sellers in contact with each other and settle the sale and purchase of goods.

There are four basic types of market structure -

i. Perfect competition - It refers to a market when there is a large number of buyers and sellers of a commodity, and no individual buyer or seller has any control over its price. Product is homogeneous and its price is determined by the forces of market supply and market demand. Example - Agricultural goods

ii. Monopoly - Monopoly is a form of market in which there is a single seller or producer of a commodity. There are no close substitutes of the monopoly product and there are barriers to entry of new firms in the monopoly market. A monopolist has complete control over price and can also practice price discrimination. Example - Railways

iii. Monopolistic competition - Monopolistic competition is a form of market in which there is a large number of buyers and sellers, selling differentiated products. Each firm has a partial control over the price. Example - restaurants and hotels

iv. Oligopoly - Oligopoly is a form of the market in which there are a few big firms and a large number of buyers of a commodity. Each firm has significant share of the market. Example - automobiles Industry