Question

Give an example of an organization operating under each of the following market structures: perfect competition, monopolistic competition, oligopoly, duopoly, monopoly. Justify your answers.

Answer 1

1.Perfect competition is a market structure in which -

there are a large number of sellers and buyers in the market

there is no barrier to entry and exit in the market

products are homogeneous in nature in terms of Shape, size ,colour etc .

Example is vegetable and fruit market

2.monopolistic is market structure in which

there are large and large number of buyers

products are slightly differentiated in terms of Shape, size colour ,etc.

The best example is toothpaste industry in which all the brands having same component of toothpaste but different in terms of packaging, taste ,appearance, advertising etc.

3 oligopoly is a market structure in which

there are few large seller and large number of buyers

there is a few barrier to entry in the market

the best example is oil and petroleum exporting countries that is OPEC which has a few large country has a sellers and whole world as a buyers.

4.Monipoly i is a market type iwhich

there is only one seller and large number of buyers.

There is barrier to entry and exit .

the best example is Indian Railways.

5.duopoly is a market type in which only two sellers control the whole market with large number of buyers.

Duopoly best example can be apple and Android smartphones