Question

main forms of market and explain?​

Answer 1

Answer:

There are four basic types of market structures: perfect competition, imperfect competition, oligopoly, and monopoly. Perfect competition describes a market structure, where a large number of small firms compete against each other with homogenous products

Answer 2

The major types of market structure in Microeconomics are perfect competition,monopoly,monopolistic competition,oligopoly and monopsony.

Explanation:

Main features of each type of market structure:-

1. Perfect Competition:The perfect competition or perfectly competitive market is the most desirable form of market structure.It consists of innumerable number of buyers and sellers for any particular product or service with no barriers to entry for both consumers and sellers.The products or services sold in perfectly competitive market are homogeneous or identical in nature or quality and the market price in of the goods and services are fixed or constant for all the sellers making them price takers.
2. Monopoly:Monopolistic markets are characterized by only one producer or seller and there is no close substitute of the product or service sold by the only monopolist in the market.The monopoly can set its own profit maximizing price of the product or service sold in the market due to absence of any market competition or rivalry and based on the maximum willingness of its consumers,which makes the monopoly,price maker.
3. Oligopoly: Oligopolistic market is characterized by the presence of only few sellers or producers operating collectively in the market to capture the majority of the market share and become dominant market leaders.Oligopoly can be commonly formed through the collective or collusive efforts of few sellers or producers who can manipulate the market price for the concerned goods and services by changing the production level to their own favor or advantage.
4. Monopolistic Competition:This type of market basically consists of some sellers or producers who are competing against each other.Monopolistic competitors sell differentiated products or services in the market and hence,the market competition is not as high as in the perfectly competitive markets.Therefore,the firms or companies in this type of market has some market power or price making ability.
5. Monopsony: In monoposony markets,there only one buyer or consumer for the concerned product or service sold in the market.It is opposite to monopoly from the perspective of the consumers or buyers.Hence,in this case,the single buyer or consumer has the absolute market power or price making power.