Perfect Competition
A market situation in which a large number of producers or sellers producing and selling similar products.
For example
We are going to a vegetable market and enquire about the price of carrot from a shopkeeper. He says carrots are for 25/- per kg. In the same way, i enquire from many shopkeepers and i got the same answer, i noticed that ,
A. There are large number of buyers and sellers in the carrot market.
B. All the shopkeepers are selling carrot at 25/-
C. Free entry and exit
D. Product homogeneity.
E. Firms are profit maximizers.
This type of market is known as perfectly competitive market.
A perfect competion is a price taker.
Monopoly
The word monopoly is a latin term. Mono means single and poly means seller,Monopoly is a form of market organization in which there is only one seller of the commodity.
There are no close substitutes for the commodity sold by the seller.
Example : Indian Railways
A monopoly Firm is a price maker.
A market situation in which a large number of producers or sellers producing and selling similar products.
For example
We are going to a vegetable market and enquire about the price of carrot from a shopkeeper. He says carrots are for 25/- per kg. In the same way, i enquire from many shopkeepers and i got the same answer, i noticed that ,
A. There are large number of buyers and sellers in the carrot market.
B. All the shopkeepers are selling carrot at 25/-
C. Free entry and exit
D. Product homogeneity.
E. Firms are profit maximizers.
This type of market is known as perfectly competitive market.
A perfect competion is a price taker.
Monopoly
The word monopoly is a latin term. Mono means single and poly means seller,Monopoly is a form of market organization in which there is only one seller of the commodity.
There are no close substitutes for the commodity sold by the seller.
Example : Indian Railways
A monopoly Firm is a price maker.
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