Markets are know as mechanism for exchange of goods and
services. Markets as concentration of liquidity. There are channles of
information fow as there are medium of exchange of goods and services .
The markets structure are differentiated into four markets
according to there features
1)perfect competition:
In this market price is only thing that differentiates the customers.
if we can keep less price than others then we can sell the whole product
Example:
We can take small hotels are perfectly competitive because
there are many in number as we compared to Five star hotels. small hotel people
can change there price according to the demand to attract the customers
2)Monopolistic competition:
In this completion there are many firms and there is no restriction
to entry to market so many can enter this market and there will be downward
sloping but it is relatively elastic. the key elements are advertising and
branding
Example:
We can take best example Colgate and close-up as in this completion
many can enter as there is no differentiation in products
3)oligopoly competition:
In this market there are only few members to compete and
there is restriction to entry and the product is not differentiated and there
is downward sloping and it is relatively inelastic
Example:
We can take the companies of car manufacturing companies as
there are few in number and the product is not differentiated from others
4)Monopoly competition:
In this competition there is only one person and there are
no compititors as there is complete restriction to entry and the product is
unique . there is downward sloping and there is more inelastic than oligopoly .
firm has considerable control over price
Example :
As all knows that railways is the best example for monopoly
market
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