Q3. What are the different types of market or forms?

Ans.3 The market is presented as a form that is for the cultural advantage of the general public. The
market structure comprises different types of markets, and the structures are portrayed by the
nature and the level of competition that exists for the goods and services in the market. The forms
of the market, both for the products market and the factor market or the service market, is to be
decided by the idea of rivalry that is winning in a specific kind of market.
The Market structure is an expression that is resultant for the quality or the adequacy of the market
competition that is winning in the market. There are seven primary market structures:

 Monopoly
 Oligopoly
 Perfect competition
 Monopolistic competition
 Monopsony
 Oligopsony
 Natural monopoly

Meaning of a Market:

A market can be characterised as where a couple of parties can meet, which will expedite the
trading of products and services. The parties involved in the market activities are the sellers and the
buyers. A market is an actual structure like a retail outlet, where the dealers and purchasers can
meet eye to eye, or in a virtual structure like an internet-based market, where there is the truancy of
direct, actual contact between the purchasers and vendors.

Types of the market:

Monopoly:

A monopolistic market is a market formation with the qualities of a pure market. A pure monopoly
can only exist when one provider gives a specific service or a product to numerous customers. In a
monopolistic market, the imposing business organisation, or the controlling organisation, has the
overall control of the entire market, so it sets the supply and price of its goods and services. For
example, the Indian Railway, Google, Microsoft, and Facebook.

Oligopoly:

An oligopoly is a market form with a few firms, none of which can hold the others back from having
a critical impact. The fixation or concentration proportion estimates the piece of the market share of
the biggest firms. For example, commercial air travel, auto industries, cable television, etc.

Perfect competition:

Perfect competition is an absolute sort of market form wherein all end consumers and producers
have complete and balanced data and no exchange costs. There is an enormous number of makers
and customers rivalling each other in this sort of environment. For example, agricultural products
like carrots, potatoes, and various grain products, the securities market, foreign exchange markets,
and even online shopping websites, etc.
Monopolistic competition:

Monopolistic competition portrays an industry where many firms offer their services and products
that are comparative (however somewhat flawed) substitutes. Obstructions or barriers to exit and
entry in monopolistic competitive industries are low, and the choices made of any firm don’t
explicitly influence those of its rivals. The monopolistic competition is firmly identified with the
business technique of brand separation and differentiation. For example, hairdressers, restaurant
businesses, hotels, and pubs.

Monopsony:

A monopsony is a market situation wherein there is just a single purchaser, the monopsonist. Just
like a monopoly, a monopsony additionally has an imperfect market condition. The contrast
between a monopsony and a monopoly is basically in the distinction between the controlling
business elements. A solitary purchaser overwhelms a monopsonist market while a singular dealer
controls a monopolised market. Monopsonists are normal to regions where they supply most of the
locale’s positions in the regional jobs. For example, a company that collects the entire labour of a
town. Like a sugar factory that recruits labourers from the entire town to extract sugar from
sugarcane.

Oligopsony:

An oligopsony is a business opportunity for services and products that is influenced by a couple of
huge purchasers. The centralisation of market demand is in only a couple of parties that gives each a
generous control of its vendors and can adequately hold costs down. For example, the supermarket
industry is arising as an oligopsony with a worldwide reach.

Natural monopoly:

A natural monopoly is a kind of a monopoly that can exist normally because of the great start-up
costs or incredible economies of scale of directing a business in a particular industry which can bring
about huge barriers to exit and entry for possible contenders. An organisation with a natural
monopoly may be the main supplier of a service or a product in an industry or geographic area.
Normally, natural monopolies can emerge in businesses that require the latest technology, raw
materials, or similar factors to work. For example, the utility service industry is a natural monopoly.
It consists of supplying water, electricity, sewer services, and distribution of energy to towns and
cities across the country.