Market means a particular place where buyer and seller meet each other and buy and sell commodities .

But in economics it doesn’t mean any particular place but it means a entire area where buyers and sellers of commodity area in such contact with each other that price of commodity tends to be one throughout the area.................... .

Area

Buyers and Sellers

One commodity

Free competition

Differences Perfect Monopolistic Monopoly

1. No. Of seller Large large one

2. Product Homogeneous Product differentiation Homogeneous

3. Price Uniform Not uniform Not uniform

4. Entry of firms Free entry Not absolute freedom Not possible

5. Knowledge of market Perfect knowledge Imperfect Imperfect

6. Mobility Perfect Imperfect Imperfect

7. Price elasticity of demand

perfect Relatively Relatively

8. Average revenue AR=MR AR>MR AR>MR

9.Selling cost Not req. Very significant Seldom

10. Degree of price control

Price taker Partial control over price Price maker

The end