Question

Notes of forms of market for class 12

Answer 1

Market forms are:

Perfect competition: there are many numbers of buyers as well as many numbers of sellers.

Monopolistic competition, also called competitive market: there are a large number of independent firms. Each firm has a very small proportion of the market share.

Oligopoly: A market is dominated by a small number of firms which own more than 40% of the market share.

Oligopsony: A market dominated by many sellers and a few buyers.

Monopoly: There is only one seller and many number of buyers.

Natural monopoly: A monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm.

Monopsony: There is only one buyer in the market