Forms of market class 12

FORMS OF MARKET AND PRICE OF DETERMINATION UNDER PERFECT COMPETITION.
By Devesh Prajapati-deveshprajapatinvs@gmail.com

MEANING OF MARKET
Market refers to the whole region where buyers and seller of a commodity are in contact with each other to effect purchase and sale of the commodity.

Meaning and basic for classifying market structure.
Market structure refers to number and types of firms operating in the industry.
The main factors:-
1.Number of buyers and sellers
2.Nature of commodity
3.Freedom of movement of firms
4.Knowledge of market condition
5.Mobility of goods and factors of production

Forms of market structure
1.Perfect competition
2.Imperfect competition
Monopoly
Monopolistic competition
Oligopoly

Perfect competition market
It refers to a market situation where there are a very large no of buyers and sellers dealing in a homogeneous product at a price fixed by the market.

Features of perfect competition
A.Very large number of buyers and sellers
B.Homogeneous product
C.Freedom of entry and exit.
D.Perfect knowledge among buyers and sellers.
E.Perfect mobility of factors of production
F.Absence of transportation costs
G.Absence of selling costs.

Meaning Of Monopoly Market
Monopoly is derived from two Greek words: ‘Monos’Means Single and ‘Polus’ means a seller.
Meaning–Monopoly refers to a market situation where there is a single seller selling a product which has no close substitutes.
Features of monopoly
1 . Single seller
2. No close substitutes.
3. Restrictions on entry and exist
4. Price discrimination
5. Price maker

Reasons for emergence of monopoly
Government licensing
Patent rights
Cartel
Control on raw materials

Forms of market class 12

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