"Dear friends,Hope you are doing well!!This is my sixth post related to micro-economics ,I hope it will benefit you a lot in studying .
CHAPTER :FORMS OF MARKET
MARKET:In economics the term market does not refer to any particular place but the entire are where buyers and sellers of a commodity are in contact with each other face to face contract between them is not compulsory they can establish contact through difference means of communication letter telegraph ,telegram etc.
PERFECT COMPETITION: It refers to a situation where there is very large number of buyer & seller selling homogeneous product at a price fixed by the industry and firm is a price taker.
SLAP FREE MOBILE PRODUCT (this is a short code type it will help you to learn the features of perfect competition)
Features
S:Shape of demand curve(perfectly elastic)Horizontal line straight line parallel to X axis.
L:Large number of buyer & seller
A:Absence of selling cost
P: Perfect Knowledge
FREE :Free entry and exist
P: Perfect mobility(factors of production)that is land ,lobour ,capital,entrepreneur are perfectly : Homogeneous product
MONOPOLY MARKET: It refers to that market where there is single seller selling homogeneous or differentiate product with no close substitute.
Features
1)Single seller
2)No close substitute
3)Perfectly immobility
4)Firm is a price maker
5)Barrier in entry and exist
6)Price discrimination
7)Nominal selling cost
8)Shape of demand curve (inelastic
MONOPOLISTIC COMPETITION:It refers to those market situation in which there are large number of firms selling differentiated product having close substitute.
Features
1)Large number
2)Close substitute
3)product differentiation
4)Imperfect knowledge
5)huge ceiling cost
6)Non -price competition
7)Free Entry Exist
8)Firm is a price maker
9)Imperfect mobility
10)Shape of demand curve(flatter)
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