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Market
structures:
 1) Monopolistic competition:-
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Monopolistic competition is the form
of market in which there are large number of sellers of a
particular
product, but each seller sells somewhat differentiated
product. In this market, the number of sellers is large
but it is
unusually large. The products of the sellers are differentiated but
are close substitutes of one
another. There are no restrictions to
the entry of new firms to produce the close substitutes. Buyers and
sellers do not have perfect knowledge of market conditions. It
incurs selling cost to increase the demand
for its product.

2) Perfect competition:-

Perfect competition as a market

structure in which there are large number of sellers and buyers of
homogeneous commodity. The perfectly competitive firm is then a
price taker and sell any amount of the
commodity at the established
price. There are no barriers to entry or exit of firms. All buyers
and sellers
have complete knowledge of the market conditions.

3) Oligopoly:-

Oligopoly as a market organization

in which there are a few sellers of the homogeneous or
differentiated
products. The number of sellers depends on the size
of the market. There are restrictions to entry of new
firms. The
price and output decisions of one firm affects the similar
decisions of the firms. Selling costs are
incurred by firms to
attract customers.

4) Monopoly:-

Monopoly is a market structure in

which there is a single firm producing the output. There are no
close
substitutes for the commodity produced by the monopolist. The
monopolist produces all the output in a
particular market,thus he
is a price maker. There are significant barriers to entry.

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