Forms Of Market Structure
There are million or billions of business in the world but they don't know their correct Form of Market Structure. Therefore, today a discuss with you some of the different forms of markets.
Forms of market structure :-
1). Perfect Competition
Perfect competition refers to a market situation where there are very large number of buyers and sellers dealing in a homogeneous product at a price fixed by the market.
Example :- The closest example we may have for such kind of market can be agriculture goods ( like rice and wheat )
Characteristic of perfect competition :-
a). Large number of buyer and sellers.
b). Same product
c). Freedom of entry and exit.
It refers to market situation where there is a single seller selling a product which has no close substitute.
Example :- Railway of India
Characteristic of Monopoly :-
a). Single seller
b). No Competition
c). Restrictions on entry
3). Monopolistic Competition
Monopolistic competition refers to a market situation in which there are large number of firms which se closely related but different products.
Example :- Markets of products like soap, toothpaste, AC etc
Characteristic of Monopolistic Competition :-
a). Large number of sellers
b). Product differentiation
Oligopoly refers to a situation in which there are few firms selling homogeneous or differentiated product.
Example :- Cement, steel, aluminium, etc
Characteristic of oligopoly :-
a). Few firms
b). Batters to entry of firms