WELCOME……

JOBUSH MATHEW

MBA

SJCET – SCHOOL OF MANAGEMENT , PALAI

CHARACTERISTICS ON WHICH MARKETS ARE

DISTINGUSHED

“A market is that mechanism by which buyers and sellers are brought together. It is not necessarily a fixed place. “

- J.L.Edwards

What is a Market ??

Market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place.

Market…

CommodityCompetitionAreaExistence of buyers and sellers

Characteristics of Market…

Basis of area… .International market . National market . Regional market . Local market

Classification of Markets…

Perfectly competitive marketMonopolistic competitive marketMonopolyOligopoly

Basis of competition…

Market in which there are large numbers of buyers and sellers of homogeneous products.

* Perfectly competitive market

Large number of buyers and sellersHomogeneous productsFree entry and exitNo control over the pricePerfect knowledge

Characteristics- perfect competition

Market in which there are many sellers of a commodity, but the product of each seller differs from each other.

Monopolistic competitive market

Large number of buyers and sellersFree entry and exit of firmsProduct differentitionSelling costSome control over the price-price makers.

Characteristics- Monopolistic competition

Market in which there is only one seller of a commodity.

Monopoly

Single seller and large number of buyersNo close substitutesNo difference between a firm and an industryEntry is difficultProducer is price maker- monopolist is a price

maker

Characteristics- Monopoly

Market in which there is only one supplier and one buyer.

Bilateral Monopoly

Market in which there are only a few sellers of a commodity.

Oligopoly

Few sellersHomogeneous or Heterogeneous productsSome control over the priceEntry is possible but difficultInterdependence in decision making

Characteristics- Oligopoly

Type of oligopolyMarket in which there are only two sellers of

the commodity

Duopoly

Two large producersHomogeneous as well as HeterogeneousUncertaintyLack of demand curve

Characteristics-Duopoly

Characteristics

Perfectly competitive

Monopolistic competitive

Monopoly Oligopoly

Competitors Many Few to many No direct competitors

Few

Entry Easy Not Difficult Difficult Difficult but possible

Nature of goods

Homogeneous

Heterogeneous No directly

competing goods

Homogeneous or Heterogeneous

Control over price

No Some Yes Some

In short…

Paul A Samuelson,Economics,2010,McGraw-Hill companies.

R.K.Lekhi,Managerial economics,2012.Totalmbaguide.

References….

THANK YOU…..