INTRODUCTION MY NAME IS SUCHIT SHUKLA ..HAVE DONE B.COM FROM ALLAHABAD UNIVERSITY HAVE 4YEARS EXPERIENCE IN TEACHING FIELD AS A ACCOUNTS AND ECONOMICS FACULTY
FORMS OF MARKET
Market A market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.
THE FIRST MARKET Barter system Barter System It is a system of exchange by which goods or services are directly exchanged without using a medium of exchange, such as money Trade First
Inefficiency of Barter System 1. Lack of Double Coincidence of Wants 2. Lack of store value 3. Lack of Division 4. Lack of a Common Measure of Value
Forms of Market Perfect Competition Monopoly Monopolistic Competition Oligopoly
Perfect Competition Perfect competition is a form of the market where there is a large number of buyers and sellers of a commodity No control over price by an individual firm.
Features of Perfect Competition s and sellers. Freedom of Entry and Exit; this will require low sunk costs. All firms produce an identical or homogenous product. All firms are price takers, Therefore firm's demand curve is perfectly elastic
Firm's Demand Curve Under Perfect Competition In this fig.7.Firms produce homogenous (identical) goods that are not distinguishable from the goods produced by their competitors. Prices are determined in the market and firmsare price takers, selling their output at the market price. Each firm faces a perfectlyelastic (horizontal) demand curve equal to the market price Pl Rs. 3 AR = MR 3 Fig. 7: Horizontal AR curve & MR curve
Monopoly A market situation where there exists a single seller selling such a good which has no close substitutes. They are the PRICE SETTERS A single seller exists for a product, ie. 100% of mark share.