Theory Of Pricing & Output Determinati on

Market Structure:-

1. Pure Competition.

2. Perfect Competition.

3. Monopoly.

4. Monopolistic Competition.

5. Oligopoly.

Pure Competi ti on

Large No of Sellers & Buyers

Homogeneous Product

Free Entry & Exist

Perfect Competi ti on

Perfect Knowledge of the Market

Absence of Transport Cost

Perfect Mobility of the factors of production

Monopoly

Pure or Perfect Monopoly

1.Only one firm producing the commodity

2.There should be no substitute for commodity.

Characteristics Features Of Monopolistic Competition

Existence of Number of Firms

Product Differentiation

Easy Entry & Exist

Multiplicity of Price

Elastic Demand

Features of Oligopoly

1. Small no. of Sellers & buyers

2. Product differentiation not a necessary condition

3. Control over price restricted by Mutual

Independence

4. Barriers to Entry

5. Advertising & Sales Promotion.