ECO ASSIGNMENT-4

a. Foodgrains: Rice and Wheat - This market can be classified as an Oligopoly as

there are few large players who dominate the market.
b. Stock Market - The stock market can be considered as an Oligopoly as well since
there are only a few large stock exchanges in the world and a limited number of
companies whose stocks are actively traded.
c. Market for bus transportation in Bangalore - This market can be considered as a
Monopolistic Competition as there are many small and large players offering bus
transportation services, but they are not identical and have some degree of product
differentiation.
d. Petrol - The market for petrol is an Oligopoly as there are few large oil companies
that dominate the market and set the price.
e. Branded fast food - This market can be classified as Monopolistic Competition as
there are many small and large players offering branded fast food, but they are not
identical and have some degree of product differentiation.
f. Fireworks - This market can be considered as a Perfect Competition as there are
many small and large players producing fireworks, and there is no significant entry
barrier.
g. Confectionary - The market for confectionery can be considered as Monopolistic
Competition as there are many small and large players offering confectionery
products, but they are not identical and have some degree of product differentiation.

2. “Perfect competition and monopoly are two opposite market structures. In perfect
competition, there are many small firms that produce identical products, and no
single firm has control over the market price. In contrast, in a monopoly, there is only
one firm that produces a unique product, and it has complete control over the market
price.
In perfect competition, firms are price takers, meaning they have no control over the
market price and must accept the prevailing price. In a monopoly, the firm is a price
maker, meaning it can set the price at a level that maximises its profits.

In perfect competition, there are no barriers to entry, and new firms can easily enter
the market. In a monopoly, there are significant barriers to entry, such as high startup
costs or legal restrictions, which prevent new firms from entering the market.”

3. “Imperfect competition refers to market structures that are less competitive than
perfect competition. It is characterized by a marketplace with fewer suppliers of
goods or services, and the products may not be identical or nearly identical.
Imperfect competition includes monopolistic competition, oligopoly, and monopoly.
In imperfect competition, sellers have more control over the market price of the
goods they supply, and there may be barriers to entry that prevent new firms from
entering the market. The structure of a market can significantly impact the financial
performance and conduct of the firms competing within it. Overall, imperfect
competition creates market inefficiencies that result in economic losses.”