Market Structure

Market is an arrangement where commodit or commodities are bought or sold. A market needs potential buyers and potential sellers to make the transactions happen. It refers to the conditions where these kind of transactions happen. Consumers' expenditure plays an important role in product market whereas derived demand ensures the factor market. Structure is needed for everything. ach and everything in this world has a definite struture.Starting from our daily usage in computers we have active directory structure! in business organi"ation we have business organi"ational strucutre #hen we consider the military ranksin marine there is a strict marine corps rank strucutre. $ikewise markets have different strucutres depending on different factors. %nderstandin the market strucute is needed when a researcher goes out for data collection. &ere the data collected reveals the market structure that from which type of market structure the final decision or conclusion has been arrived at the research.

Classification of Market Structure

'ifferent prices of market represent the different markets for different commodities. Markets are physically visible and identifiable. Markets are broadly classified based on the following three categories( ) *eogeraphical Area ) +ime $imit ) Competition

Market Structure based on Geographical Area

*eographical area in the sense of the area or the space where the market takes its effect and how much influence it make and it gathers from where. +his classification is subdivided into the following types for easy understandings. ,-. ,/. ,1. ,3. $ocal Market 0egional Market 2ational Market #orld Market or International Market

Market Structure based on Time Limit

4ased on the time limit or time period! market structure falls into the following sub types ( ,-. 5ery short term market or very short period market ,/. Short term market or short period market ,1. 5ery long term market or very long period market

,3. $ong term market or long period market

Market Strucutre based on Competition

Competition lies everywhere. 6or a market strucutre competition takes an important role in its classification. +hus depending on type of compeition market structure can be understood as follows ,-. ,/. ,1. ,3. 7erfect compeition Monopoly 8ligopoly Monopolistic competition