Economics

  Forms of Market 1. Market      Market represents all the areas in which buyers and sellers are in contact with each other for the purchase and sale of the commodity. Main Market forms 1.Perfect competition      Perfect competition is the market situation in which there are a large number of buyers and sellers sell homogeneous product and there is free entry and exit. 2. Features of perfect competition        a) A large number of buyers and sellers : Under perfect competition the number of buyers and sellers in the market is so large that the decision taken by individual buyer or seller can have no influence over the price.      b) Sellers are price takers:   Sellers in perfect competition accepts the price determined by the forces of demand and supply. Price mechanism determined the price of the commodities therefore, sellers are price takers. c) Homogeneous products ...