Competition is a activity or condition to gain or win something by establishing superiority over other parties involved.
Types of market competition
- perfect competition
- Imperfect competition
- Monopoly
- Monopolistic
- Oligopoly
- Duopoly
Perfect competition:
A market Structure in which all firms and an industry are price takers and in which there is freedom of entry into and exit the industry is called perfect competition.
Features:
- A large number of buyers and sellers.
- price taker ( market price)
- homogeneous products ( same products)
- perfect knowledge
- No government interference.
Imperfect competition:
In this market there are small number of firms, having large number of buyers and sellers with different products.
It covers there types of market.
- Monopoly market
- Monopolistic market
- Oligopoly
- Duopoly
Monopoly:
a pure monopoly exists if one and only firm produces and sell the particular commodity in the market.
example: Railways
Features:
- Large number of buyers
- Only one seller
- Imperfect knowledge
- Price maker
Monopolistic:
Monopolistic competition is a market situation in which there are large numbers of buyers and sellers differentiated goods.
There is competition which is not perfect between many firms making very similar products which are closer but not perfect substitutes.
Features:
- Large number of buyer and sellers
- Product differentiation
- Imperfect knowledge
- Freedom of entry and exists
Oligopoly:
In oligopoly market there are a large number of buyers but few sellers of the product it is know as oligopoly.
Features:
- Large number of buyers
- few sellers
- high barriers
- inter dependence in decision making
- price rigidity
Duopoly:
Duopoly is the type of oligopoly in which only two sellers operate in the market other feature are same in oligopoly there are few sellers and in duopoly only two sellers.
Relevant topic:
Market:
It’s a market-place where seller (shopkeepers) and buyer (customers) meet, goods and services offered by seller for the sale and transfer of ownership commodities.
Components of Market
- Seller ( producer)
- Buyer (Customer)
- Nature of product (type of product)
- Negotiation price
- Transfer of ownership and product
- Transfer of money or equal value.
