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KVS, Delhi Region
Forms of market
Micro
economics

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Market•
• Market refers to
exchange of goods
and services

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KVS, Delhi Region
Types of Market
• Markets can be classified into
Perfect and Imperfect.

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KVS, Delhi Region
Perfect market
• Meaning :
It refers to that situation
where there exists a large
number of buyers and
sellers selling homogenous
goods at single price fixed
by the market forces
(demand & supply).

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KVS, Delhi Region
Features of perfect market
• Large number of sellers
• Large number of buyers
• Homogenous products
• Single price
• Free entry and exit of firms
• No selling costs
• Perfectly elastic demand curve
• AR = MR
• perfect knowledge

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KVS, Delhi Region
Imperfect Market
•Monopoly
•Monopolistic
•Oligopoly

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KVS, Delhi Region
Monopoly
• Meaning: Monopoly
refers to a market
situation where
there exists a single
seller selling such a
good which has no
close substitute.

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KVS, Delhi Region
Features of Monopoly
• Single seller
• Large number of buyers
• No close substitutes
• Price discrimination
• No selling costs
• Relatively inelastic demand curve
• AR>MR
• AR&MR curves are downward sloping
• No free entry and exit of firms

9. Prepared By:-
KVS, Delhi Region
Monopolistic Market
Meaning:
• it’s a market situation
where we find a large
number of buyers and
sellers but not as large
as perfect market
, selling differentiated
products.

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KVS, Delhi Region
Features of Monopolistic Market
• Large number of buyers
• Large number of sellers
• Differentiated products
• Presence of selling costs
• Relatively elastic demand curve
• AR>MR
• AR&MR curves are downward sloping

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KVS, Delhi Region
OLIGOPOLY
The form of market having few
number of sellers with substantial
market share

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KVS, Delhi Region
Questions for self-
evaluation
• What is a market?
• Classify markets.
• Explain the features of perfect market.
• Discuss the features of monopoly market.
• How a monopoly market differ from
monopolistic market?
• Explain the features of monopolistic market.
• Compare the features of perfect and
monopoly markets.

13. Prepared By:-
KVS, Delhi Region
Mrs. Anita Bhardwaj
KV, Vigyan Vihar
Mrs .Monika Bajaj KV, Tagore
Garden
Mrs. Leena Singh KV, AGCR
Mr. Sri Keshav KV, no.2 Delhi
Cantt
Mrs .Ritu Tanwar KV, AFS
Rajokri
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