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: Ease of entry and exit from the market
In perfect competition, there are hardly any barriers, such as government regulations and policies, to enter or exit the market. Consequently, firms find it easy to enter the markets as all the organisations earn normal profits. Similarly, organisations also easily exit the market as they are not bound by any rules and regulations. Perfect knowledge
In the perfectly competitive scenario, both buyers and sellers are completely aware of the product price prevailing in the market. Thus, no seller would try to sell the product at a higher price. However, this also leaves no scope for bargaining for buyers too. No transportation costs
In perfect competition, the existence of the same price is because of zero transportation costs. Due to the absence of transportation costs, there is no scope of price variation in all sectors of the market. Also Read: What Market Failure?