Title: Types of Market Structures on the Basis of Competition
Headings: Types of Market Structures on the Basis of Competition
Types of Market Structures on the Basis of Competition
Figure-1 shows different types of market structures on the basis of competition:
1. Purely Competitive Market:
Figure-2 shows the average revenue curve under pure competition curve:
2. Perfectly Competitive Market:
Some of the definitions of perfect competition given by different economists are as follows:
In addition to conditions implied in pure competition, perfect competition also involves certain other conditions, which are as follows:
i. Large Number of Buyers and Sellers:
ii. Homogeneous Products:
iii. Free Entry and Exit:
iv. Perfect Knowledge:
v. Absence of Transport Cost:
vi. Perfect Mobility of Factors of Production:
3. Imperfectly Competitive Market:
There are different forms of imperfect competition, which are shown in Figure-3:
Monopoly:
Some of the definitions of monopoly given by different economists are as follows:
Following are the main features of the monopoly market structure:
i. Single Seller:
ii. No Substitutes of the Product:
iii. Barriers to Entry:
iv. Restriction on Information:
Some of the barriers to entry of new organizations are as follows:
i. Legal Restrictions:
ii. Resource Ownership:
iii. Efficiency in Production:
iv. Economies of Scale:
Monopolistic Competition:
Some of the definitions of monopolistic competition given by different economists are as follows:
Some of the characteristics of monopolistic competition are as follows:
i. Large Number of Sellers and Buyers:
ii. Differentiated Products:
iii. Free Entry and Exit:
iv. Restricted Mobility of Factors of Production:
v. Price Policy:
Oligopoly:
Some of the popular definitions of oligopoly are as follows:
The main characteristics of oligopoly are as follows:
i. Few Sellers and Many Buyers:
ii. Homogeneous or Differentiated Products:
iii. Barriers in Entry and Exit:
iv. Mutual Interdependence:
v. Lack of Uniformity:
vi. Existence of Price Rigidity:

Content: Imperfectly Competitive Market: ADVERTISEMENTS: In economic terms, imperfect competition is a market situation under which the conditions necessary for perfect competition are not satisfied. In other words, imperfect competition can be defined as a type of market that is free from the stringent rules of perfect competition. Unlike perfect competition, imperfect competition is characterized by differentiated products. The concept of imperfect competition was firstly explained by an English economist, Joan Robinson. In addition, under imperfect competition, buyers and sellers do not have any information related to the market as well as prices of goods and services. In imperfect competition, organizations dealing in products or services can influence the market prices of their output. There are different forms of imperfect competition, which are shown in Figure-3: The different forms of imperfect competition (as shown in Figure-3).