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
Business Economics Tutorial
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Content: 13 mins read
What is Market Structures? Market structure can be defined as a group of industries characterised by a number of buyers and sellers in the market, level and type of competition, degree of differentiation in products and entry and exit of organisations from the market. Table of Contents [ Hide]
1 What is Market Structures? 2 Types of Market Structures
2.1 Pure Competition
2.2 Perfect Competition
2.2.1 Perfect Competition Characteristics
2.2.1.1 Large number of buyers and sellers
2.2.1.2 Homogenous product
2.2.1.3 Ease of entry and exit from the market
2.2.1.4 Perfect knowledge
2.2.1.5 No transportation costs
2.3 Imperfect Competition
2.3.1 Types of Imperfect Competition
2.3.1.1 Monopolistic competition
2.3.1.1.1 Monopolistic Competition Characteristics
2.3.1.2 Oligopoly
2.3.1.2.1 Oligopoly characteristics
2.3.1.3 Monopoly
2.3.1.3.1 Monopoly characteristics
2.3.1.4 Price Discrimination Under Monopoly
3 Business Economics Tutorial
The study of market structure helps organisations in understanding the functioning of different firms under different circumstances. Based on the study, organisations can make effective business decisions. 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.