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A Perfect Competition market is that type of market in which

the number of buyers and sellers is very large, all are


engaged in buying and selling a homogeneous product
without any artificial restrictions and possessing perfect
knowledge of the market at a time.
1. Large Number of Buyers and Sellers:
The number of buyers and sellers must be so large that none of them
individually is in a position to influence the price and output of the industry
as a whole.
2. Homogeneity of the Product:
Each firm should produce and sell a homogeneous product.
3. Free Entry and Exit of Firms:
The firm should be free to enter or leave the firm.
4. Perfect Knowledge of the Market:
Buyers and sellers must possess complete knowledge about the prices at
which goods are being bought and sold.
5. Perfect Mobility of the Factors of Production and Goods:
There should be perfect mobility of goods and factors between industries
6.. Absence of Price Control:
There should be complete openness in buying and selling of goods.
7. Absence of Transport Cost:
There must be absence of transport cost.
8. One Price of the Commodity:
There is always one price of the commodity available in the market.

MONOPOLISTIC COMPETITION IS SIMILAR TO PERFECT


COMPETITION EXCEPT HOMOGENIUS PRODUCTION.
product is differentiated and heterogeneous.
A monopoly is An economic market structure where a specific person or
enterprise is the only supplier of a particular good.
1. Profit maximizer: a monopoly maximizes profits.
2. Price maker: the monopoly decides the price of the good or product
being sold.
3. High barriers to entry: other sellers are unable to enter the market of
the monopoly.
4. Single seller: in a monopoly one seller produces all of the output for a
good or service. The entire market is served by a single firm.
5. Price discrimination: in a monopoly the firm can change the price and
quantity of the good or service. In an elastic market the firm will sell a
high quantity of the good if the price is less.

OLIGOPOLY:
Oligopoly is present when a handful of competitors dominate the market for a
good or service and each firm makes pricing and marketing decisions in light
of the expected response by rivals.
Oligopoly describes markets that can be characterized as follows:
1. Few sellers. A handful of firms produces the bulk of industry output.
2. Homogeneous or unique product. Oligopoly output can be
homogeneous (e.g., aluminum) or distinctive (e.g., ready-to-eat cereal).
3. Blockaded entry and exit. Firms are heavily restricted from entering
or leaving the industry.
4. Imperfect dissemination of information. Cost, price, and product
quality information is withheld from uninformed buyers.