Introduction to Market

Structure
 Market Structure
 Market means that place where
buyers and sellers are maturing their
transactions at certain prices

 Structure means that framework

through which a country is producing
its goods and services
 Types of Market Structure
 Perfect Market Structure or Perfect
Competition

 Imperfect Market Structure

Types of Imperfect Market

 Monopoly

 Duopoly

 Oligopoly

 Monopolistic Competition
 Monoposony

 Duoposony
 Perfect Competition
 It is that market structure in which
large number of sellers and buyers
are maturing their transactions
 The product are homogeneous
 Monopoly
 Monopoly is that market structure in
which there is only one seller and
many buyers.
 The products are homogeneous and
heterogeneous
 Duopoly
 When there are only two sellers and
many buyers then this market
structure is called Duopoly
 Oligopoly
 It is that market structure in which
there are (3-11) Sellers and many
buyers
 If the products are homogeneous
then it is called pure oligopoly
 If the products are heterogeneous
then it is called Differentiated
oligopoly
 Oligopoly

Oligopoly

Non Collusive
Collusive Oligopoly
Oligopoly
 Collusive Oligopoly
 In collusive oligopoly, two or more than
two firms are making an agreement on the
determination of price and output.
 There are two types
 Cartel

 Market Sharing Cartel

 Profit sharing Cartel
 Price Leadership
 Non Collusive Oligopoly
 That type of oligopoly in which
different businessmen are making
their decisions independently but
taking into account the reactions of
other firms.
 Monopolistic Competition
 It is that market structure in which
there are almost (30 to 75) sellers
and many buyers.
 Products are homo and hetero in
nature.