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Topic 4. Market PDF
Topic 4. Market PDF
2015
1. What is a market?
2. What is money?
Topic 4. Markets 3.
4.
Classification of market
Market structure
5. Market infrastructure
6. Types of market economies
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Market structure
Features Perfect Imperfect competition • Perfect competition, a theoretical market structure
competition Monopolistic Oligopoly Pure that features no barriers to entry, an unlimited
competition monopoly
Number of Large Many A few One
number of producers and consumers
companies (two and more)
Type of goods Homogeneous Differentiated Homogeneous Doesn’t have
/Differentiated substitutes
Impact on None, Some Depends on Limited by
price “pricetaker” the other demand
competitors “pricesetter”
Entry/Exit None Low High Very high
Barriers
Examples None (but: Commodities Mobile Government
Forex) networks services
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• Monopoly, where there is only one provider of a • Market institutions are a network of commercial
product or service organizations (such_as manufacturers, producers,
• Monopsony, when there is only a wholesalers, retailers, and buyers) who generate,
single buyer in a market. distribute, and purchase goods and services
• Market infrastructure can be considered to
embrace a wide range of organizations and
institutions that make market activity possible
• Logistics Center is a center in a defined area within • Trade fair is an exhibition organized so that
which all activities relating to transport, logistics companies in a specific industry can showcase and
and the distribution of goods - both for national demonstrate their latest products, service, study
and international transit, are carried out by various activities of rivals and examine recent market
operators on a commercial basis. trends and opportunities
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• A market economy is an economy in which • Anglo-Saxon model refers to the form of capitalism
decisions regarding investment, production, predominant in Anglophone countries and typified
and distribution are based on supply and by the economy of the United States
demand, and prices of goods and services are • Characteristics of this model include levels
determined in a free price system. of regulation and taxes being low, and the public
• The major defining characteristic of a market sector providing fewer services. It can also mean
economy is that investment decisions and the strong property rights, contract enforcement, and
allocation of producer goods are mainly made by overall ease of doing business as well as low
negotiation through markets barriers to free trade.