Description
Describes what is market and types of markets
MARKET ANALYSIS
Introduction
• In general terms, Market refers to a physical
place where goods and services are
exchanged between buyers and sellers at a
particular price.
• In economic terms, market is defined as a
system under which buyers and sellers
negotiate the price of a product, settle the
price, and transact their business.
Factors considered for
Classification of Markets
• Size
• Type of Product
• Demand
• Mobility of Products
• Peace and Security
• Currency and Credit System
• State Policy
• Competition **
Types of Market Structures
Perfectly
Competitive
Market
Imperfectly
Competitive
Market
Monopoly
Monopolistic
Competition
Oligopoly Duopoly
Perfectly Competitive Market
• Large Number of Buyers and Sellers
• Homogeneous Products
• Free Entry and Exit
• Perfect Knowledge
• Absence of Transport Cost
• Perfect Mobility of Factors of Production
Examples
• Free Software
• Fruits & Vegetable
Vendors
Monopoly
• Single Seller
• No substitutes of the Products
• Barriers to Entry
• Restriction on Information
• Legal Restrictions
• Resource Ownership
• Efficiency in Production
• Economies of Scale
Examples
• Water Utilities
• Power Utilities
Monopolistic Competition
• Large Number of Sellers and Buyers
• Differentiated Products
• Free Entry and Exit
• Restricted mobility of Factors of
Production
• Price Policy
Examples
• Breakfast Cereals
• Movies
Oligopoly
• Few Sellers and Many Buyers
• Homogeneous or Differentiated
Products
• Barriers in Entry and Exit
• Mutual Interdependence
• Lack of Uniformity
• Existence of Price Rigidity
Examples
• Magazine Industry
• Mobile Operators
Duopoly
• Only two dominating firms
• Homogeneous Goods
• Interdependence
Examples
• Airbus & Boeing
• Visa & Mastercard
Thank You
doc_465739228.ppt
Describes what is market and types of markets
MARKET ANALYSIS
Introduction
• In general terms, Market refers to a physical
place where goods and services are
exchanged between buyers and sellers at a
particular price.
• In economic terms, market is defined as a
system under which buyers and sellers
negotiate the price of a product, settle the
price, and transact their business.
Factors considered for
Classification of Markets
• Size
• Type of Product
• Demand
• Mobility of Products
• Peace and Security
• Currency and Credit System
• State Policy
• Competition **
Types of Market Structures
Perfectly
Competitive
Market
Imperfectly
Competitive
Market
Monopoly
Monopolistic
Competition
Oligopoly Duopoly
Perfectly Competitive Market
• Large Number of Buyers and Sellers
• Homogeneous Products
• Free Entry and Exit
• Perfect Knowledge
• Absence of Transport Cost
• Perfect Mobility of Factors of Production
Examples
• Free Software
• Fruits & Vegetable
Vendors
Monopoly
• Single Seller
• No substitutes of the Products
• Barriers to Entry
• Restriction on Information
• Legal Restrictions
• Resource Ownership
• Efficiency in Production
• Economies of Scale
Examples
• Water Utilities
• Power Utilities
Monopolistic Competition
• Large Number of Sellers and Buyers
• Differentiated Products
• Free Entry and Exit
• Restricted mobility of Factors of
Production
• Price Policy
Examples
• Breakfast Cereals
• Movies
Oligopoly
• Few Sellers and Many Buyers
• Homogeneous or Differentiated
Products
• Barriers in Entry and Exit
• Mutual Interdependence
• Lack of Uniformity
• Existence of Price Rigidity
Examples
• Magazine Industry
• Mobile Operators
Duopoly
• Only two dominating firms
• Homogeneous Goods
• Interdependence
Examples
• Airbus & Boeing
• Visa & Mastercard
Thank You
doc_465739228.ppt