NON-competitive markets: MR khan
Monopoly - Monopoly markets refer to
where
a single seller / a firm control the supply of
the commodity.
Oligopoly Market – Means it is the
market structure
in which there are a few firms / sellers in
the market producing and selling products.
Monopolistic competition-
Monopolistic competition
is a type of im-perfect competition in which
there
are many sellers selling different products
but not profit substance.
FEATURES OF MONOPOLY:
Single seller
No close substance
Price makers
High barriers to entry
Perfect knowledge
REQUIREMENT OF MONOPOLY MARKET STRUCTURE:
A monopoly market structure requires
that there is a
single procedure of a particular commodity.
No other commodity works as a
substitute for
this commodity and for this situation
to persist over time ,
entry into the industry by another
firm is prevented.
FEATURES OF OLIGOPOLY:
Few large firms
Interdependence among firm
Group behavior
Advertisement cost
Homogenous / differentiate products
Price rigidity
EXAMPLES OF OLIGOPOLY:
Oil
Detergence
Tyres
Cars
Cigarettes etc.
FEATURES OF MONOPOLISTIC MARKETS:
Existence of large number of buyers
and sellers
Product differentiation
Selling cost
Free entry and exit of firm
Demand curve is downward sloping
Price makers
EXAMPLES OF MONOPOLISTIC COMPETITION:
Shampoos
Pastes
soaps
Biscuits etc.
Average revenue – Average revenue is the revenue
received by the
firm per – unit of the sold commodity.
AR = TR/q
Marginal revenue – marginal revenue means
the additional revenue
received by selling one / more unit
of a commodity.
MR = TRn – TRn-1
The relationship between the marginal
revenue and
Price elasticity of demand is sufficient to
notice only one aspect.
If the price elasticity of demand is
more than one,
When the marginal revenue has a
positive value and
Become less than one, when the marginal
revenue
has a negative value.
The equation of a demand function:
q/Q = 20 – 2p / q =
a – bp
DEMAND:
Demand is combination of desired to
buy,
ability to pay and willingness to
pay.
DETERMENENTS OF DEMANDL:
Price of commodity
Price of related goods
Income of consumer
Taste and preference
Habits
