Market — Flashcards

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Market refers to the arrangement in a given area whereby buyers and sellers come in contact with each other directly or indirectly, to buy or sell goods. It is a system in which buyers and sellers int…

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A market must have a commodity, buyers and sellers, and communication between them. Without any one of these, market exchange cannot take place.

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Market transactions can take place directly or indirectly through agents, telephone, mobile, or internet. Buyers and sellers can still exchange goods and services for money even without meeting in per…

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Market structure means the nature of the product and the number of sellers and buyers in the market. On this basis, monopoly and perfectly competitive market are the two extreme forms of market struct…

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Monopoly is a market structure in which there is a single firm producing all the output and there is no close substitute for the product sold by the monopolist. It is the extreme form of market struct…

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The word Monopoly is derived from the Greek words Monos, meaning single, and Polus, meaning seller.

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The monopolist is a price-maker because there is only one seller in the market, so there is no competitor to challenge the price. The monopolist can decide the price, but a very high price will reduce…

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Under monopoly, there is only one seller. Since the single firm produces all the output, the firm and the industry become the same.