Camille Saranghelo...

2.  market structures are represented by
four basic market models
› These are theoretical frameworks for existing
firms and industries in the real world

3.  Firms and industries play a vital role in our
economy
› It is seeking ways of reducing costs of
production
› Improving the quality of their goods and
services

4.  Satisfaction or interest of the consumers
has been ignored due to self-interest of
producers or sellers
 Inherent market imperfections

5.  The relationship between input (factors
of production) and output (goods and
services produced by the factors of
production)

6.  refers to the fair allocation of the
productive resources like land, capital
and management among members of
society

7.  Allocates goods and services through
the mechanism of demand and supply
› The members of society obtain their goods
and services in the market on the basis of
their ability and willingness to buy

8.  there is a need for the government to
participate in the allocation function of
the market system to protect the interest
of the poor

9.  BASIC MARKET MODELS AND THEIR
CHARACTERISTICS
 DETERMINANTS OF MARKET STRUCTURES
 PRICE AND OUTPUT DETERMINATION
 GRAPHS AND TABLES TO SUPPORT THE
LAST TOPIC

10.  Perfect/ pure type
a. perfect or pure competition
b. pure monopoly
 Imperfect/ non-pure type
a. monopolistic competition
b. oligopoly

11.  Pure Competition
› there is a large number of independent
sellers offering identical product
 Monopolistic Competition
› Only one seller or producer supplying unique
goods and services
› One-buyer market situation is known as
monopsony

12.  Monopolistic Competition
› There is a relatively large number of small
producers or suppliers selling similar but not
identical products
 Oligopoly
› Few firms offering standardized or
differentiated goods and services
› A few buyer market situation is called
oligopsony

14.  Pure Competition
› Large number of independent sellers
› Products are identical or homogeneous
› No single seller and no single buyer can
influence the change in market price of a
product
› The rise fall of market price is due to change
in total demand or total supply
› There are no significant barriers like
legal, financial, or technical requirements