Forms of market

Prepared By:- KVS, Delhi Region

Forms of market

Micro economics

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Market•

• Market refers to exchange of goods and services

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Types of Market

• Markets can be classified into Perfect and Imperfect.

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Perfect market

• Meaning : It refers to that situation where there exists a large number of buyers and sellers selling homogenous goods at single price fixed by the market forces (demand & supply).

Prepared By:- KVS, Delhi Region

Features of perfect market

• Large number of sellers • Large number of buyers• Homogenous products• Single price• Free entry and exit of firms• No selling costs• Perfectly elastic demand curve• AR = MR

• perfect knowledge

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Imperfect Market

•Monopoly •Monopolistic•Oligopoly

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Monopoly

• Meaning: Monopoly refers to a market situation where there exists a single seller selling such a good which has no close substitute.

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Features of Monopoly• Single seller• Large number of buyers• No close substitutes• Price discrimination• No selling costs• Relatively inelastic demand curve• AR>MR• AR&MR curves are downward sloping• No free entry and exit of firms

Prepared By:- KVS, Delhi Region

Monopolistic Market

Meaning:• it’s a market situation

where we find a large number of buyers and sellers but not as large as perfect market , selling differentiated products.

Prepared By:- KVS, Delhi Region

Features of Monopolistic Market

• Large number of buyers • Large number of sellers• Differentiated products• Presence of selling costs• Relatively elastic demand curve• AR>MR• AR&MR curves are downward sloping

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OLIGOPOLY

The form of market having few number of sellers with substantial market share

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Questions for self-evaluation

• What is a market?• Classify markets.• Explain the features of perfect market.• Discuss the features of monopoly market.• How a monopoly market differ from

monopolistic market?• Explain the features of monopolistic

market.• Compare the features of perfect and

monopoly markets.

Prepared By:- KVS, Delhi Region

Mrs. Anita Bhardwaj KV, Vigyan Vihar

Mrs .Monika Bajaj KV, Tagore Garden

Mrs. Leena Singh KV, AGCR

Mr. Sri Keshav KV, no.2 Delhi Cantt

Mrs .Ritu Tanwar KV, AFS Rajokri

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