Title: Types Of Market Structures | Pure, Perfect Competition
Headings: What is Market Structures? Types of Market Structures
What is Market Structures? Types of Market Structures
What is Market Structures? Types of Market Structures
What is Market Structures?
Types of Market Structures
Pure Competition
Perfect Competition
Perfect Competition Characteristics
Large number of buyers and sellers
Homogenous product
Ease of entry and exit from the market
Perfect knowledge
No transportation costs
Imperfect Competition
Types of Imperfect Competition
Monopolistic competition
Monopolistic Competition Characteristics
Oligopoly
Oligopoly characteristics
Monopoly
Monopoly characteristics
Price Discrimination Under Monopoly
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Content: Also Read: Elasticity of Demand
Types of Market Structures
Types of market structures: Pure Competition
Perfect Competition
Imperfect Competition
Types of Market Structures
Pure Competition
Pure competition exists in a market when there is large number of sellers offering homogenous products to equal population of buyers. Due to presence of high population of producers, price does not get affected so as to cause inflation. Thus, buyers can purchase products from any seller as there is no difference in the price and quality of products of different sellers. This is because the market sets the price for the market, making sellers as price takers. Moreover, in a purely competitive market, all the products are considered as substitutes of one another. Therefore, if there is a rise in the price of a product from one producer, buyers can easily purchase the similar product from the other seller. In a purely competitive market, due to the absence of legal, technological, financial or other barriers, it is easy for a new organisation to enter or exit the market. However, the existence of pure competition is not possible in the real world.