2. INTRODUCTION Normally, the term “Market” refers to a specific place where goods and services are purchased and sold. In economics, the term “Market” does not consider a specific place but the whole area where buyers and sellers of a product and services are located.

3. MEANING OF MARKET According to Prof. R. Chapman, “The term market refers not necessarily to a place but always to a commodity and the buyers and sellers who are in direct competition with one another.” According to Benham, “Any area over which buyers and sellers are in such close touch with one another, either directly or through dealers, that the prices obtainable in one part of the market affect the prices paid on another parts.”

6. PERFECT COMPETITION A perfect competitive market is a market where there are various numbers of buyers and sellers. They all have perfect and equal knowledge of the market and used to sell and buy a homogeneous product without any artificial restrictions at a given period time.

7. According to A. Koutsoyiannis, “Perfect competition is a market structure characterized by a complete absence of rivalry among the individual firms.”

8. CHARACTERISTICS OF PERFECT COMPETITION Large number of Buyers and Sellers Homogeneous product Homogeneous price Free Entry and Exit Perfect Knowledge Absence of Transport Costs Perfect Mobility of the Factors of Production Absence of Artificial Restrictions Absence of Selling Costs

9. MONOPOLY Monopoly is a Greek word which means : “Monos” – Simple ; “Plus” – Seller. According to D. Salvatore,”Monopoly is the form of market organization in which there is single firm selling a commodity for which there are no close substitutes.”

10. CHARACTERISTICS OF MONOPOLY MARKET There is only one seller and large number of customers. There is only one company in the industry, so it can be said that there is one company to one industry. Since, there is one company in the market, there is not any competition.

12. MONOPOLISTIC COMPETITION According to R. F. Kahn, “Competition is imperfect if the demand for the individual firm’s product is not perfectly elastic.” Monopolistic competition refers to competition among a large number of sellers producing close but not perfect substitutes for each other.

14. FEATURES OF MONOPOLISTIC COMPETITION In the market, there are number of sellers, who produce a close substitute product and services. Every product in the market has some minor quality differentiation. There not any control for entry or exit for competitor. It means number of companies may increases or decreases at any time. All company has independent behavior.

15. OLIGOPOLY Oligopoly is a situation where a few giant companies are competing against each other. On basis of nature of product, oligopoly market may be defined into two parts as : 1. Identical product oligopoly 2. Differential product oligopoly

16. CHARACTERISTIC OF OLIGOPOLY MARKET There are very few large companies ; hence they are mainly interdependence. Due to lesser competitors, they try to capture the market by their advertising and promotional scheme. Hence, selling and distribution costs increase. Due to interdependence of the firm, group behavior can be observed. That is any change occurred in one company may directly apply by the other companies.

18. PREPARED BY: Shukla Khushbu P. (Roll no. – 15) (130320107106) Mehta Vidhi P. (Roll no. – 31) (130320107038) Dave Vidhi R. (Roll no. – 46) (130320107123) Kakkad Riya A. (Roll no. – 38) (130320107031) Shah Krishna U. (Roll no. – 49) (130320107090)

19. SPECIAL THANKS TO: PROF. NISHA MISTRY