Prepared By:- KVS, Delhi Region Forms of market Micro economics
Oct 20, 2014
Prepared By:- KVS, Delhi Region
Forms of market
Micro economics
Prepared By:- KVS, Delhi Region
Market•
• Market refers to exchange of goods and services
Prepared By:- KVS, Delhi Region
Types of Market
• Markets can be classified into Perfect and Imperfect.
Prepared By:- KVS, Delhi Region
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
Prepared By:- KVS, Delhi Region
Imperfect Market
•Monopoly •Monopolistic•Oligopoly
Prepared By:- KVS, Delhi Region
Monopoly
• Meaning: Monopoly refers to a market situation where there exists a single seller selling such a good which has no close substitute.
Prepared By:- KVS, Delhi Region
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
Prepared By:- KVS, Delhi Region
OLIGOPOLY
The form of market having few number of sellers with substantial market share
Prepared By:- KVS, Delhi Region
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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