Market Structure

Market and market structure is explained. To understand better visithttps://www.youtube.com/watch?v=gXv8KN3JtJs&t=18s

1. MARKET STRUCTURE
By
Dr. RakshaSingh
Principal
Shri Shankaracharya
Mahavidyalaya
[email protected]
www.ssmv.ac.in
Dr. RAKSHA SINGH

2. MARKET
According to Sidgwick,”
A market is a body of persons in such
commercial relations that each can easily
acquaint himself with the rates at which certain
kinds of exchange of goods or services are from
time to time made by the others.”
Dr. RAKSHA SINGH

3. FEATURES OF MARKET
1. Buyers & Sellers
A product will be produced and marketed only when there is demand for it .
Without seller demand for any product is worthless
2. Competition
Some competition among buyers and sellers are important
3. Interaction
Proper interaction is compulsory for to know the terms and conditions of
exchange of the commodity
4. Existence of Commodity
There are separate market for separate commodities, Willingness to buy and
sell is possible with existence of a commodity
5. Price
Mutual agreement for price
6. Knowledege
Dr. RAKSHA SINGH

4. MARKET CLASSIFICATION
Market can be classified
1.Area-
Local -confined to particular locality-vegetable mundi
Regional extends to a larger area say district or state( for durable goods)
National
International
2.Nature of transactions-
Spot Market- If transactions are confined to a particular spot
Future Market-If goods are to be exchanged at future
3.Volume of business
Wholesale market-If goods exchanged in large quantities
Retail market- If goods exchanged in small quantities
Dr. RAKSHA SINGH

5. MARKET CLASSIFICATION…..
4. Basis of time
Prof Alfred Marshall, on the basis of time divided market in four
Very Short period -Supply inelastic, cannot adjust itself with the
changes in demand
Short period- Small changes in supply are possible through
better utilization of resources
Long period- Sufficient time to adjust supply ,Firm can
adjust size of firm as well as expand or
contract scale of production
Very long period-Supply can be fully adjusted to the changes in
demand through the introduction of new
techniques, innovation
Dr. RAKSHA SINGH

6. MARKET CLASSIFICATION…..
5.Basis of Regulation
Regulated Market-Controlled by appropriate government authorities, to
ensure no unfair practices in the market e.gStock market
Unregulated Market-Absolutely free market, market forces decides
everything
6.Status of sellers
Primary Market-Manufacturing units or producers sell their goods to the
wholesalers
Secondary Market-Consists of the middlemen E.gwholesalers, who act as a
link between the producers and the retailers
Terminal Market-Consist of retailers who directly supply goods to the
ultimate buyers
Dr. RAKSHA SINGH

7. MARKET STUCTURE
Market structure refers to the number of firms operating in
the industry, nature of competition between them and the
nature of the product.
It consists of both goods market and services (factor)
market.
Determinants of Market Structure
1.The degree to which the industry is vertically integrated
2.The number of firms
3. Nature of Product
4. Conditions of entry and exit
5. Economies of Scale
Dr. RAKSHA SINGH

8. FORMS OF MARKET STRUCTURE
Perfect Competition
Monopolistic
Competition
Oligopoly
Monopoly
MARKET STRUCTURE
More competition
Dr. RAKSHA SINGH
As arrow goes up
competition
increases and
concentration is low
as arrow goes down
competition
decreases but
concentration
increase

9. CONCENTRATION
Low Concentration
Concentration defined as -
degreeat which a small
number of firms make up for
the total production in the
market (industry)
Firms are not influencing the
market production and the
industry
Less market share Perfect
Competition
High Competition
High Concentration
If this ratio is 100
percent it means
industry is a monopoly
Concentration ratio
ranges from o% to
100% this indicates
competition in the
industry
High market Share
Less Competition
Dr. RAKSHA SINGH

10. FORMS OF MARKET STUCTURE..
Perfect
Competition
Large Number of
buyers and sellers
Homogeneous
Product
Industry
determines the
Price
One price
Monopolistic
Competition
Differentiated
Products
Many Sellers
Dr. RAKSHA SINGH

11. FORMS OF MARKET STUCTURE..
Oligopoly
Few Sellers
Selling
Homogeneous
Pure Oligopoly
Cement, Copper
Selling
Differentiated
Product Imperfect
Oligopoly
Monopoly
Single Seller
No close
Substitutes
Dr. RAKSHA SINGH

12. QUESTIONS
1.Market where
trading of goods
happens in large
quantities
A Retail market
B Regulated Market
C Wholesale Market
D Spot Market
Which industry is
most likely
monopolistic in
nature
A Automobile Industry
B Car Repair
C Electrical Generating
D Steel
Dr. RAKSHA SINGH

13. Answer
Q1 –C
Wholesale Market
Q2-B
Car Repair
Dr. RAKSHA SINGH

14. FEATURES OF MARKET
STRUCTURE
Dr. RAKSHA SINGH

15. WORDS IN HINDI
Market Structure बाजार का ढाांचा
Perfect Competition पूर्णप्रतियोगििा
Monopoly एकागिकार प्रतियोगििा
Oligopoly अल्पागिकार ,कुलीन प्रतियोगििा
Monopolistic Competition एकागिकारी
Economies of scale पैमाने की बचि,बडे पैमाने की के फायदे
Vertical Integration लांबवि एकीकरिा
Duopoly दुयागिकार
Dr. RAKSHA SINGH

16. References
I.C. DIngra, V. (1997). Economics.
Sultan Chand& Sons.
Kar.lE.case, R. C. (2018). Principles of
Economics.Pearson.
Sciencebyalok.com. (2020, 30 March).
SERIES, T. (2017). Economics. DANIKA
publishing COmpany.
Dreamscom.co
Alamyphoto
Dr. RAKSHA SINGH

17. Dr. RAKSHA SINGH
THANK YOU