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Markets (Imperfect Competition (Oligopoly (Possibilities of the Market…

- - - - Existence of Large no of firms
        
        Number of Dealers are not that large as compared to perfect competition
        
        and are Unorganized
      - Product Differentiation
        
        Products are close , although they are not exact substitutes
        
        High Cross Elasticity of Demand between products
        
        Differentiation through publicity , advertisement
        
        Products are not Homogeneous
      - Ease of entry and exit
        
        No difficulty for a new firm to enter in a market
      - Different prices
      - Downward slopping Demand Curve
        
        Curve is not Perfectly elastic but is susceptible to changes in price
  - - - perfect
      - imperfect
      - close
      - collusive
      - Partaial,syndicated
      - etc
    - - Factors
        
        High Capital investment
        
        Some Industries are highly capital intensive
        
        They Need huge capital investment
        
        This acts as barrier to entry of new firms
        
        Absolute cost advantage
        
        This is enjoyed by existing firms
        
        Acting as a barrier to entry of new firm
        
        Product Differentiation
        
        Contributes to emergence of oligopoly
        
        Economies of Large scale Production
        
        Mergers and Combination
        
        Reducing total number of firms
        
        Less Competition
        
        Emergence of oligopoly
        
        Barriers to new entry of firms
    - - A few Sellers
        
        Only Few firms
        
        Each Firm Enjoys a large share of the market
        
        Influences the price and output in industry
      - Interdependence
        
        Firms r depended on e.o as no single firm can take into account - reaction of other firms and policies
        
        Good Deal of Interdependence among firms
      - Indeterminateness of Demand Curve
        
        Mutual Interdependence
        
        Creates an atmosphere of uncertanity for firms
        
        In oligopoly no firm can visualize their consequences of its price output policy with a degree of certanity
        
        Demand Curve is Indeterminate
      - Conflicting Attitude of firms
        
        Operating firms in market have conflicting attitudes in market
      - Element of monopoly
        
        Firms acts in its own limited sphere , as a monopolist- when it comes to price and output fixation
      - Price Rigidity
        
        Sticky or rigid - prices in monopoly
  - - - Pure Monopoly
        
        Market Situation in which a single firm sells a product for which theres no good substitue
    - - Demand is Market Demand
      - Price Maker
    - - One seller
        
        this eliminates the competition
      - Large Number of Buyers
        
        no one buyers influenece
      - No Close Substitues
      - Restrictions on entry of new fimrs
        
        Strict Barrier
      - Informative Selling Costs
        
        selling cost
        
        incurred i n beginning
      - Downward Sloping Demand Curve
        
        Slopes From Left to Right
        
        Meaning at less price more output ( check this)generated
      - Price - Maker
        
        Seller
        
        has nothing to do with policies, and reaction of rival
      - Price Discriminating Power
        
        Monopolist
        
        Charge different in different market depending on elasticity of demand of his product
  - - - market structure is called duopoly
- - - - For economist market is not only a place where things are brought and sold
        
        But the whole of any region in which buyers and sellers are in a free intercourse with one another that the price of same goods tend to equality easily and quickly .
        
        Also, a market is a set of conditions where
        
        commodity is marketed
        
        Extent and Nature
        
        Of Competition in Selling
        
        the nature and numbers of buyers
        
        the nature of commodity that different sellers offer
- - - - Free entry or exit
        
        No legal restrictions should be there
        
        Only when there will be free entry and exit
        
        Then Firms will earn normal profit
      - Perfect Knowledge
        
        Sellers and Buyers should be aware of the price offered
        
        No one will offer something more higher at price or lower
      - Perfect Mobility of Factors of Production
        
        Whichever factors of production firm finds profitable - its free on them
        
        Its essential so as firms adjust to their Supply of Demand
      - Absence of Transport cost
        
        As the price is similar in Market
        
        Its necessary that no cost of transport be incurred
      - Absence of Selling cost
        
        Goods being homogeneous no need of selling cost in market
  - - - Form of Perfect Competition
    - - EE Chamberlain
        
        In Theory of Pricing
    - - Monopoly element
    - - Of
        
        Large Number of buyers and sellers and homogeneous product only
    - - Large number of
        
        Unorganized Buyers
        
        Should be large number of buyers in market
        
        No single buyers influence in market
        
        Reason : His Demand is small in proportion to total demand
        
        Buyers are unorganized and acting in individual manner
        
        Unorganized Sellers
        
        Sellers
        
        Should be large
        
        Amount of sales by each in market should be small
        
        No one sellers individual action should influence market
        
        There should be agreement amongst sellers
      - Homogenous Product
        
        Sellers Produce similar products
        
        No Differentiation
        
        In
        
        Colour
        
        Shape
        
        Design
        
        service
        
        Buyers Mind is no way prejudiced towards a certain seller
        
        Goods in market are identical
        
        Cross Elasticity of Demand is Infinite
- - - - Local
      - National
      - International
    - - Short Period Markets
      - Long- Period Markets
    - - Participation
        
        Retail Markets
        
        As local Markets
        
        Shopping Centres
        
        Malls etc
      - Goods and Services
        
        Capital Good Market
        
        Consumer goods market
        
        Labour Markets
        
        International Currency and Commodity Makets
        
        Stock Markets
        
        Any Auction Markets
    - - Monopoly and etc
        
        It will take around 2 pages. First writing about the case . It s status. And story. So, we are in safe line , with regards to that.