Forms of market

Prepared by:-
• PRIYANKA SINGHVI
•PRIYAM CHAUDHURY
•MONIKA PATODIA
•SHAILJA MAHESHWARI
•ANJALI JHALANI
MEANING OF MARKET

Market can be defined as an

arrangement of establishing
effective relationship between
buyers and sellers of the
commodities.
Features of Market

Commodity to be bought and sold.

Buyers and sellers of commodity.
Area in which buyers and sellers live
Close contact between buyers and
sellers.
Classification of Market

On the basis of competition

a) Perfect competition market
b) Monopoly
c) Imperfect competition market
Monopolistic competition market
Oligopoly
Duopoly
Imperfect Competition Market

In this type of market buyers and

sellers have imperfect knowledge of
market situations regarding price and
commodities.
It includes:-
Large no. of firms
Product differentiation
Free entry and exit
MONOPOLISTIC COMPETITION
MARKET
It is a market situation in which both the
monopoly and competitive element exist.
FEATURES:-
Many sellers
Free entry and exit
Product differentiation
Elements of monopoly and competition
High cross elasticity of demand
Independent price policy
Revenue (Rs.)

AR
MR

quantity
OLIGOPOLY

It is a market situation in which there are

only a few sellers for more than 2 of the
commodities.
Types of oligopoly:-
Discriminating oligopoly- oligopoly with
product differentiation
Pure oligopoly- oligopoly without product
differentiation
FEATURES:-

Few sellers
Both homogenous product or product
differentiation are possible
No easy entry to the industry
Interdependence
Important role of non price competition or
advertising and selling cost
Price – output decisions are very difficult
and indeterminate
Example of Oligopoly

OPEC (Organization of Petroleum

Exporting Countries) is an example of
oligopoly, since few countries control
the production of oil.
The steel,the automobile industry in
U.S.A. is another example.
DUOPOLY

Duopoly is a simple form of oligopoly

in which only two firms dominate a
market.
Example:- Pepsi and Coke
THANK YOU