Market Structure

Market is an arrangement where commodit or commodities are bought or sold.A market needs potential buyers and potential sellers to make the transactions happen.It refers to the conditions where these kind of transactions happen.Consumers' expenditure plays an important role in product market whereas derived demand ensures the factor market.

Structure is needed for everything. Each and everything in this world has a definite struture.Starting from our daily usage in computers we have active directory structure,in business organization we have business organizational strucutre When we consider the military ranksin marine there is a strict marine corps rank strucutre.

Likewise markets have different strucutres depending on different factors.Understandin the market strucute is needed when a researcher goes out for data collection.Here the data collected reveals the market structure that from which type of market structure the final decision or conclusion has been arrived at the research.

Classification of Market Structure

Different prices of market represent the different markets for different commodities.Markets are physically visible and identifiable.Markets are broadly classified based on the following three categories:

* Geogeraphical Area

* Time Limit

* Competition

Market Structure based on Geographical Area

Geographical area in the sense of the area or the space where the market takes its effect and how much influence it make and it gathers from where. This classification is subdivided into the following types for easy understandings.

(1) Local Market(2) Regional Market(3) National Market(4) World Market or International Market

Market Structure based on Time Limit

Based on the time limit or time period,market structure falls into the following sub types :

(1) Very short term market or very short period market(2) Short term market or short period market(3) Very long term market or very long period market(4) Long term market or long period market

Market Strucutre based on Competition

Competition lies everywhere. For a market strucutre competition takes an important role in its classification.Thus depending on type of compeition market structure can be understood as follows

(1) Perfect compeition(2) Monopoly(3) Oligopoly(4) Monopolistic competition