Concepts Related To Market #Economics-Concepts

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 I heartily welcome you to read the post on concepts related to "Market" in economics. They play a significant role in structuring economy and development.

Let us read now!

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Market

Market refers to a place where the buyers and sellers meet together and transactions of buying 

and selling takes place is called market. Communication Plays a vital role in the market. Transactions may be in the form of:

• Goods: refers to physical commodities which are manufactured in industry/firm.
• Services: Refers to transactions without involving money.
• Other Information.

Local market

If transaction of a particular goods takes place in a particular area, It is called as local market. The business continued with that product in that area only. Because these goods are highly perishable which means they cannot transported to long distance places. They cannot stored for long time. For example, vegetables, fruits, milk, etc..

National market

When a commodity is demanded and supplied all over the country in all markets, It is called as national market. Example, Rice, sugar, Wheat, etc.

Monopoly

The term monopoly is derived from Greek words "Monos" which means single and "Polein " which means a person or a seller. So, single seller market is known as monopoly market. 

• Single seller
• There is no closed substitutes 
• He is a price maker (based on using elasticity of demand as we discussed in demand concepts).

Monopolistic competition

It refers to a market where different firms/industries produce same or homogeneous commodities with few differences is called as monopolistic competition. This condition in a market is known as monopolistic competition.

Note: here the goods produced by all producers are highly substitutes goods to each other.

Oligopoly

It refers to a market where there are less number of producers are situated is called Oligopoly. These goods may be homogeneous or different in size and shapes. For example, Automobiles.

Duopoly

We assume that You've already listened this word anywhere. Dual means to or double. It is a market where there are 2 sellers. Here, A seller is always influenced by the changes of other seller in terms of prices and quantity. A seller may take his decisions independently or together jointly.

Equilibrium price

In economics the term "Equilibrium" always refers to a point where there is stability and changelessness. Equilibrium price refers to a price in the market where the supply and demand are equal.

Price discrimination

As we've already written that a firm can earn super normal profits based on this concept. Different prices to different customers on a same product is called as price discrimination. It is also called as Discriminating monopoly. 

Selling cost

Selling cost refers to the amount incurred on goods for its promotion by the producer is called as selling cost. It is also called as indirect cost after producing output. Advertisement is the best example of selling cost. This method is used to attract more customers as well as awareness.

Perfect competition or 

Perfect competition market is a market where large number of sellers and buyers exist. the product in this market is homogeneous product. There is full competition among sailers and buyers. 

• Large number of seller and buyers
• Homogeneous commodities 
• Free entry and free exit 
• Perfect mobilisation of factors of production (Generally refers to labour).
• No transport cost
• Both seller and buyer have full knowledge on market.

Types of price discrimination

Note: to understand more about the concept of "Price discrimination".

• Personal price discrimination: Refers to different prices for different buyers.
• Place price discrimination: Same products are sold in different places with different prices.
• Use price discrimination: charging different prices based on the usage of the goods and services.
• Product Differentiation: It is based on the nature of the products. changes in price due to variations in products.
• Time: Price discrimination based on time and different services and requirements.
• Age, Sex and Status: Refers to changes in prices based on different types of consumers and their roles.

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Thanks for reading. Hope it is helpful to you.