Economics: Types of Market

Finance TYPES OF MARKET Management Market, in economics, refers to market structures that are different from each other on the basis of degree and nature of competition MONOPOLY OLIGOPOLY There is only 1seller for a This market features few particular product/service companies Has complete market control No clarity on no. of firms but Market forces become usually 3-5 dominant firms set irrelevant here norm PERFECT MONOPOLISTIC COMPETITION COMPETITION This market has many number It is combination of monopoly of sellers & buyers & competitive market No entry or exit barrier offer similar product/service Sell homogeneous goods & but they are slightly services differentiated from each other OLIGOPSONY MONOPSONY Features a couple of big buyers There is just 1 buyer Gives power to buyers over One company buys all the vendors & allows them to goods or services offered in a push prices down region NATURAL MONOPOLY Comes into existence because of massive start-up costs or huge economies of scale in a specific industry Such firm is primary supplier of good/service to industry or region Has a high entry & exit barrier for potential contenders