Market Types
Economics · बाजार के प्रकार
📋Quick Overview
Market structure refers to the nature and degree of competition in the market for goods and services. The main types are: Perfect Competition (many sellers, identical products), Monopoly (single seller), Monopolistic Competition (many sellers, differentiated products), Oligopoly (few sellers), Duopoly (two sellers), and Monopsony (single buyer). Understanding each structure's characteristics, price determination, and real-world examples is important for exams.
📖Market Structures — Comparison
| Feature | Perfect Competition | Monopoly | Monopolistic Competition | Oligopoly |
|---|---|---|---|---|
| No. of Sellers | Very many | ONE (single) | Many | Few (2-10) |
| Product | Homogeneous (identical) | Unique (no substitute) | Differentiated (similar but not same) | Homogeneous or Differentiated |
| Entry/Exit | Free entry & exit | Blocked (high barriers) | Free entry & exit | Restricted (barriers exist) |
| Price Control | No control (price taker) | Full control (price maker) | Some control | Interdependent pricing |
| Examples | Agricultural products (wheat, rice) | Indian Railways, BSNL (earlier) | Restaurants, clothing brands, toothpaste | Telecom, automobile, airlines |
| Demand Curve | Perfectly elastic (horizontal) | Downward sloping (steep) | Downward sloping (flatter) | Kinked demand curve |
📖Perfect Competition vs Monopoly
📝Other Market Types
- •Duopoly: Special case of oligopoly with exactly TWO sellers. Example: Coca-Cola and Pepsi, Boeing and Airbus
- •Monopsony: Market with a SINGLE BUYER and many sellers. The buyer controls the price. Example: Government as sole buyer of military equipment
- •Oligopsony: Few buyers, many sellers. Example: Supermarket chains buying from farmers
- •Bilateral Monopoly: One buyer + One seller. Example: single employer in a town with one labor union
- •Natural Monopoly: Single firm can supply at lower cost than multiple firms. Example: Railways, electricity distribution