Definition of Market:
is a set of conditions in which buyers and sellers meet each other for the
purpose of exchange of goods and services for money.
Elements of Market:
essentials of a market are:
of goods and services to be exchanged.
Existence of one or more buyers and sellers.
(iii) A place
or a region where buyers and sellers of a good get in close touch with each
Types of Market/Market Model:
classified according to the number of firms in the market and by the
commodity to be exchanged. The economists on the basis of variation in the
features of market describe four market models:
analysis of each market model, it is examined as to what determines the
equilibrium price, output and profit levels for the individual firm and for the
industry, in this chapter, we discuss the most important of the various market
models that is perfect competition.