1. Forms of Markets

2. Various Types of Markets

3. Essentials of Markets in Economics
Buyer
Seller
Essentials of Markets in Economics
Commodity
Transaction

4. Name the Market based on Features

5. Large Numbers of Sellers Large Numbers of Buyers

6. Homogeneous Commodity Free Entry and Exit of Firms

7. Firm is a Price Taker (a) Industry S D O O Price Revenue
Quantity (millions)
Quantity (thousands)
(a) Industry

8. Firm is a Price Taker (a) Industry (b) Firm S Pe D O O Price Revenue
Quantity (millions)
Quantity (thousands)
(a) Industry
(b) Firm

9. Firm is a Price Taker (a) Industry (b) Firm S D = AR Pe AR = MR D O O
Revenue
Price Line
D = AR Pe AR
= MR D O O
Quantity (millions)
Quantity (thousands)
(a) Industry
(b) Firm

10. Name The Type of Market ?
PERFECT COMPETITION

11. Perfect Competition Features Very large number of buyers and sellers
Homogenous products
Freedom of entry and exit to the industry
Perfect knowledge of market
Perfect mobility of factors of production
Absence of transport costs 4

12. Name the Market based on Features

13. Large Numbers of Buyers
One Seller
Large Numbers of Buyers

14. Restriction on the Entry of New Firms Cartel Formation by Small Firms

15. Super Normal Profits

16. Price Discrimination
When the same product is sold at different prices to different buyers

17. Shape of AR & MR Curves Downward sloping curves MR is less than AR
Units sold Price TR AR MR
Revenue AR
Output MR

18. Equilibrium Output Equilibrium price and output MC = MR MC
Supernormal Profits
Cost / Revenue AC AR AC AR MR O Qm Q

19. Name The Type of Market ?

20. Monopoly Defining monopoly Single seller Large number of Buyers
No close substitutes
Barriers to entry
Super Normal Profits
Price Discrimination 8

21. Think of some examples of Monopolies

22. T H I N K

23. Imagine You are a CEO of a global software company.
How will you decide your price policy?
Can price discrimination be made socially desirable?