market- concepts of market
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ENGINEERING ECONOMICS
AND MANAGEMENT-: CREATED BY :- KAVIN RAVAL141080106026
CIVIL
CONCEPTS OF MARKET
MARKET
MARKET• Meaning of market
• Types of markets
1. Perfect competitive market2. Monopoly market3. Monopolistic market4. Oligopoly market
PERFECT COMPETITIVE MARKET
• The market in which a large number of suppliers compete with each other to satisfy the wants and needs of a large umber of consumers at competitive price.
• Conditions for Perfect Competitive Market:1) Many buyers and sellers2) Low entry barriers for sellers3) Cost of producing goods almost same4) Goods offered by various sellers are same
PERFECT COMPETITIVE MARKET
PRICE DETERMINATION Price
Quantity
Market supply
Price is fixed
Market demand
Law of demand and supply
PERFECT COMPETITIVE MARKET
• Effect of market price profit and loss…Cost per unit
Quantity
Marginal cost
Average total cost
Marginal revenue
MONOPOLY MARKET• The market in which the firm is the sole seller of a product without close
substitute
• Characteristics of Monopoly market.
1) Only one seller and other are buyers.2) Monopoly resources are impossible or difficult to get. Thus the entry
barrier is high for competitors 3) Buyers have no control over the price of the product.
MONOPOLY MARKET
Price
Demand
Marginalrevenue
Marginal cost
Average total cost
Quantity
• Price determination
MONOPOLISTIC MARKET• A market structure in which many firms sell products that are similar
but not identical.
• Characteristics of Monopolistic Market:
1) Product are similar not identical2) Number of sellers are more compared to monopoly market3) No barrier for entry exit in market
MONOPOLISTIC MARKETPRICE
Output
Marginal cost
Average total cost
DemandMarginal revenue
Average total cost
OLIGOPOLY MARKET• Number of suppliers are more compared to monopoly market for same
product , new type of market is developed which is neither competitive nor monopoly.
• Here, there will be competition among suppliers for same product but there will not be stiff competition such as in case of perfect competitive market due to less number of suppliers.
• This type of market is called oligopoly market.
OLIGOPOLY MARKET• Price determination
Combination of perfect competitive market and monopoly market.
By the group of suppliers . Known as Cartel.
Not for long term.
Perfect conclusion of sellers is required.
ANY QUESTIONS ?
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