GALGOTIAS

INSTITUTE OF
MANAGEMENT &
TECHNOLOGY

Name : KUMAR RATNDEEP

Subject : ME
Subject Code : KMBN102
Submitted to : JUNAID SIR
 INDEX
SN. DATE SIGN.
ASSIGNMENT PAGE
1. ME 12/02/2022 25 Kumar
Ratndeep
 

ASSIGNMENT FOR ME

MARKET STRUCTURE

Market structure depicts how firms are differentiated and

categorised based on the types of goods they sell
(homogeneous/heterogeneous) and how their operations
are affected by external factors and elements. Market
structure makes it easier to understand the characteristics
of diverse markets.
 The process by which price and output are determined in
the real world is strongly affected by the structure of the
market
A market consists of all the potential buyers and sellers of
a particular product
Market structure refers to the competitive environment in
which the buyers and sellers of a product operate.
Four different types of market structure

1 Perfect
competition
2 Monopoly
3 Monopolistic
competition
4 Oligopoly

Perfect competition
Perfect competition refers to a type of market where there
are many buyers and seller that feature free barrier to entry
dealing with homogeneous products with no
differentiation, where the price is fixed by the market.
Individual firms are price taker as the price is set by the
industry as a whole.
Example: Agricultural products which have many buyers
and sellers, selling homogeneous goods where the price is
determined by the demand and supply of the market and
not individual firms

Monopoly
Monopoly refers to the market situation where there is one
seller and there is no close substitute to the commodities
sold by the seller. The seller has full control over the supply
of that commodity.
Since there is only one seller, so a monopoly firm and an
industry are the same.
The firm is the price maker as they have control over the
industry.
There are high barriers to entry.
For Example: BSES ,Indian railways

Monopolistic competition
Monopolistic competition where there are many sellers,
selling products that are closely related but differentiated
from one another (e.g. quality of products may
differentiate) and hence they are not perfect substitutes
This market structure exists when there are multiple sellers
who attempt to seem different from one another.
The most distinguished features of monopolistic
competition which makes it a blending of competition and
monopoly is product differentiation.
Product differentiation refers to the actively created
differences in products with respect to brand, trademark,
design, packing, colour, size, measurement, weight such
that though the products are similar, they are not identical
or in other words the products are different but closely
related.
Example: different types of Shop

Oligopoly
Oligopoly refers to market structure where only small
number of firms operate together control the majority of
the market share. Firms are neither price takers or makers.

Firms tend to avoid price war by following price rigidity.

They closely monitor the prices of their competitors and
change prices accordingly.
Oligopoly firms focus on quality and efficiency of their
products to compete with other firms.
( Entry barriers, Small number of sellers, many buyers,
products can be homogeneous or differentiated).
Example: Network providers
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THANK YOU