This is a draft cheat sheet. It is a work in progress and is not finished yet.
Classification of market
ON BASIS OF OF PLACE |
ON BASIS OF TIME |
ON BASIS OF COMPETITION |
Local market |
Very short period |
Perfect competition |
National Market |
Short period |
Imperfect competition |
International market |
Long period |
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Very long period |
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On the basis of Competition
PERFECT COMPETITION |
IMPERFECT COMPETITION |
'Perfect competition prevails when the demand for the output of each producer is perfectly elastic' — Mrs. Joan Robinson. |
A type of Market showing some but not all the features of a competitive market. |
Number of sellers and buyers is very large. All buyers and sellers are engaged in buying and selling.Both buyers and sellers posses perfect knowledge of market. |
Consists of three types |
1) Free entry and free exit |
Monopoly |
2) Homogeneous product |
Oligolopoly |
3) Large number of sellers and buyers |
Monopolistic Competition |
4) Single price |
5) Perfect knowledge of market |
6) Perfect mobility of factors of production |
7) Absence of transport cost |
8) No government intervention |
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