Types of Market
1. Based on Competition:
Perfect Competition: In this type of market, there are many buyers and sellers, identical products, and
perfect information. No single entity can influence the market price.
Monopoly:
A single seller or producer dominates the market, giving them significant control over prices and supply.
Monopolistic Competition: Many sellers offer products that are slightly differentiated, giving them some
degree of pricing power.
Oligopoly:
A small number of large firms dominate the market, and their actions can significantly affect prices and
competition.
Based on Nature of Goods:
Goods Market:
This includes markets for tangible products like cars, electronics, and food items.
Services Market:
This includes markets for intangible services like healthcare, education, and consulting.
Based on Geographical Coverage:
Local Markets:
Transactions occur within a specific geographic area, such as a neighborhood or town.
National Markets:
Transactions cover an entire country.
International Markets:
Transactions occur across national borders, involving goods and services traded between countries.
Based on Time Horizon:
Spot Market:
Transactions involve the immediate delivery and payment of goods or services.
1. Based on Competition:
Perfect Competition: In this type of market, there are many buyers and sellers, identical products, and
perfect information. No single entity can influence the market price.
Monopoly:
A single seller or producer dominates the market, giving them significant control over prices and supply.
Monopolistic Competition: Many sellers offer products that are slightly differentiated, giving them some
degree of pricing power.
Oligopoly:
A small number of large firms dominate the market, and their actions can significantly affect prices and
competition.
Based on Nature of Goods:
Goods Market:
This includes markets for tangible products like cars, electronics, and food items.
Services Market:
This includes markets for intangible services like healthcare, education, and consulting.
Based on Geographical Coverage:
Local Markets:
Transactions occur within a specific geographic area, such as a neighborhood or town.
National Markets:
Transactions cover an entire country.
International Markets:
Transactions occur across national borders, involving goods and services traded between countries.
Based on Time Horizon:
Spot Market:
Transactions involve the immediate delivery and payment of goods or services.
