Types Of Market, Mba Aiou Assignment.

(b) describe the types of markets, other than perfectly competition markets. Under the imperfect market structure we have following types of markets. 1. 2. 3. 4. Monopoly :

Monopoly Duopoly Oligopoly Monopolistic Competition

Monopoly refers to the situation in which there is a single producer of a commodity for which there are no close substitutes. The single producer represent the whole market because there is no close substitute of his product in the market. In monopoly, the monopolist is price maker while the buyer are price taker. Assumptions of monopolistic market 1. 2. 3. 4. 5. 6.

It is assumed that there is no one seller of the specific commodity in the market. There are large number of buyers and among buyers there is a perfect competition. There are no close substitute of the commodity. The consumer is rational. Entrepreneur wants to maximize his profit. There are barriers to entry

Duopolistic Market : A market structure in which there is only two firms producing perfect substitute is called “duopoly”. The two seller of homogenous product represents the whole market. Assumptions of duopolistic market 1. 2. 3. 4.

There are only two firms in the market. Their product are perfectly substitute. Each duopolistic knows the demand for his product and the demand for the other diabolist’s product. Both the diabolistic have identical cost.

Oligopoly : A market structure in which a few sellers, who clearly recognize their mutual interdependence, produce the bulk of the market is called “Oligopoly”.

Monopolistic Competition : Monopolistic competition refers to the market structure in there are fairly large firms are selling closely related but not identical commodities.