3 ‘Types’ Of Markets Every Entrepreneur Should Know About

The four popular types of market structures include perfect competition, oligopoly market, monopoly market, and monopolistic competition.

There are four basic types of market structures.

• Pure Competition. Pure or perfect competition is a market structure defined by a large number of small firms competing against each other.
• Monopolistic Competition.
• Oligopoly.
• Pure Monopoly.

The five major market system types are Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition and Monopsony.

• Perfect Competition with Infinite Buyers and Sellers.
• Monopoly with One Producer.
• Oligopoly with a Handful of Producers.
• Monopolistic Competition with Numerous Competitors.
• Monopsony with One Buyer.

Quick Reference to Basic Market Structures

• New Markets.
• Existing Markets.
• Clone Markets.

A market is a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services. Markets can be physical like a retail outlet, or virtual like an e-retailer. Other examples include the illegal markets, auction markets, and financial markets.

There are different kinds of markets namely; weekly market, shops, shopping complex or mall. The profit earned by different market varies. It depends on the type of investment made by seller and buying capacity of the customer. In present times, goods are also sold by online marketing and home delivery.

Four types of market structures are perfect competition, monopolistic competition, oligopoly, and monopoly….Examples of Monopoly Competition Market Structure:

• Microsoft and Windows.
• DeBeers and diamonds.
• Your local natural gas company.

Types of Market Structures

• 1] Perfect Competiton. In a perfect competition market structure, there are a large number of buyers and sellers.
• 2] Monopolistic Competition. This is a more realistic scenario that actually occurs in the real world.
• 3] Oligopoly.
• 4] Monopoly.

There are sixteen stock exchanges in the world that have a market capitalization of over US$1 trillion each. They are sometimes referred to as the “$1 Trillion Club”….Major stock exchanges.

Types of Markets Physical Markets – Physical market is a set up where buyers can physically meet the sellers and purchase the desired merchandise from them in exchange of money. Non Physical Markets/Virtual markets – In such markets, buyers purchase goods and services through internet.

Types of market structure Perfect competition – Many firms, freedom of entry, homogeneous product, normal profit. Monopoly – One firm dominates the market, barriers to entry, possibly supernormal profit. Monopoly diagram Oligopoly – An industry dominated by a few firms, e.g. 5 firm concentration ratio of > 50%.

It is also known as the share market or equity market. It is the types of markets where people buy and sell the share and stock which let them claim on business as a shareholder. Stock markets may include securities funds and some private funds too. Stock exchange market list shares of common equity and other securities too.

In such a market the buyers and sellers do not meet or interact physically, instead the transaction is done through internet. Examples – Rediff shopping, eBay etc. Auction Market – In an auction market the seller sells his goods to one who is the highest bidder.