Question

describe the types of market and explain their requirements.​

Answer 1

Physical Markets - Physical market is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in exchange of money. Shopping malls, department stores, retail stores are examples of physical markets.

Non Physical Markets/Virtual markets - In such markets, buyers purchase goods and services through internet. In such a market the buyers and sellers do not meet or interact physically, instead the transaction is done through internet. Examples - Rediff shopping, eBay etc.

Auction Market - In an auction market the seller sells his goods to one who is the highest bidder.

Market for Intermediate Goods - Such markets sell raw materials (goods) required for the final production of other goods.

Black Market - A black market is a setup where illegal goods like drugs and weapons are sold.

Knowledge Market - Knowledge market is a set up which deals in the exchange of information and knowledge based products.

Financial Market - Market dealing with the exchange of liquid assets (money) is called a financial market.

hope it help you

Answer 2

Explanation:

There are four basic types of market structures: 1)perfect competition,

2) imperfect competition,

3) oligopoly,

4)monopoly

1)Perfect competition

• It describes a market structure, where a large number of small firms compete against each other. In this scenario, a single firm does not have any significant market power. As a result, the industry as a whole produces the socially optimal level of output, because none of the firms can influence market prices.

2) Monopolistic competition

• It also refers to a market structure, where a large number of small firms compete against each other. However, unlike in perfect competition, the firms in monopolistic competition sell similar but slightly differentiated products. That gives them a certain degree of market power, which allows them to charge higher prices within a specific range.

3) oligopoly

• It describes a market structure that is dominated by only a small number of firms. That results in a state of limited competition. The firms can either compete against each other or collaborate (see also Cournot vs. Bertrand Competition). By doing so, they can use their collective market power to drive up prices and earn more profit.

4) monopoly

• It refers to a market structure where a single firm controls the entire market. In this scenario, the firm has the highest level of market power, as consumers do not have any alternatives. As a result, monopolies often reduce output to increase prices and earn more profit.