Economic institutions:

market Structures
 Market
a place or medium where buyers
and sellers interact to transact
economic goods and services.
 Market structure
is the classification of a market with
regard to key characteristics:
–number of sellers and buyers
–entry barriers to the market
–control and determinant of pricing
–types of products in the market
Kinds of market
structures
 pure competition market

characterized by a large number of

sellers and buyers, homogenous
products, and complete freedom of
entry and exit of market players.
characterized by a single seller of a
well-defined product for which there
is no available substitute. The
seller has complete control of the
pricing of goods and services.
 monopolistic competition

characterized by a large number of

independent sellers, each producing
a differentiated product in the
market with a low barrier to entry of
other players.
 oligopoly
a market in which only few sellers
comprise the entire industry with a
relatively larger number of buyers.
Sellers, therefore, have the power
over the price of products.
Economic institutions:
market transactions
 Market Transactions
is the exchange of goods and
services through a market where
buyers and sellers agree on the price
and quantity of goods and services to
be bought and sold in a specific
place and time.
Types of Markets
 Physical Markets

This is a set up where buyers can

physically meet the sellers and
purchase the desired merchandise
from them in exchange for money.
 Non-Physical Markets or Virtual Markets

In such markets, buyers purchase

goods and services through the
internet. The buyers and sellers do not
meet or interact physically, but transact
online instead.
 Auction Market
In an auction market, the seller sells
his or her goods to the highest
bidder.
 Black Market
This is a setup where illegal goods
like drugs and weapons are sold.
 Knowledge market
This is a setup that deals with the
exchange of information and
knowledge-based products.
 foreign exchange market

where parties are involved in the trading

of currency; In this market, one party
exchanges one country’s currency with
an equivalent quantity of another
 keypoints
1. Market
2. Market Structures
3. Pure Competition
4. Monopoly
5. Monopolistic Competitions
6. Oligopoly
 keypoints
6. Physical Markets
7. Virtual Markets
8. Auction Markets
9. Black Market
10. Knowledge Market
11. Financial Market
How does the continuous
decrease of the price of
petroleum in the world
market affect the producer
and seller of the product?