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.


2). Monopoly

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


4). Oligopoly 

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



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