IT 1081C Lecture Notes - Lecture 15: Market Structure, Market Power, Monopolistic Competition
Document Summary
Types of markets perfect competition and imperfect market. Features of perfect competitive market monopoly market and oligopoly. Market: anything which facilitates contact between buyers and sellers constitutes a market. It refers to the entire place where the buyers and sellers are in contact with each other to buy and sell commodities. Factors determining the market structure: market structure refers to the type of market. It is determined by the following 3 factors: number of buyers and sellers of a commodity, nature of competition between them, nature of commodity. On the basis of above 3 factors there are 2 types of market structure: perfectly competitive market. Ii) imperfectly competitive market- this is further sub divided into 3 types: monopoly, monopolistic competition, oligopoly. It is the form of market where there is a large number of buyers and sellers of a commodity. Homogenous product is sold with no control over price by an individual firm.
