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: In pure competition, the homogeneity of the products with a fixed market price is shown by the average revenue curve or the demand curve as a horizontal straight line. Average Revenue Curve under Pure Competition
In Figure, OP is the price level at which a seller can sell any quantity of products. Perfect Competition
Perfect competition is a market in which there are many firms selling identical products with no firm large enough relative to the entire market to be able to influence the market price. Perfect competition is a type of market structures which is extension of pure market subject to a wider scope. Perfect Competition Characteristics
The main perfect competition characteristics are discussed below: Large number of buyers and sellers
Homogenous product
Ease of entry and exit from the market
Perfect knowledge
No transportation costs
Characteristics of Perfect Competition
Large number of buyers and sellers
In perfect competition, a large number of buyers and sellers exist. However, the high population of buyers and sellers fails to affect the prices, and the output produced by a seller or purchases made by a buyer are very less in comparison to the total output or total purchase in an economy. Homogenous product
Another important characteristic of perfect competition is the existence of homogenous product for buying and selling. This makes it possible for buyers to choose the product from any seller in the market. Due to the presence of large number of sellers, the market price remains same throughout the market.