1. Market structures

6. A classification of market forms Form of Market Structure Number of Firms Nature of Product Price elasticity of demand for Degree of control 1 2 3 4 5 a) Perfect competition A large no. of firms Homogeneous Product Infinite None b) Imperfect competition A large no. of firms Differentiated products (but) they are close substitutes of each other Large Some i) Monopolistic competition A large no. of firms Product differentiation by each firm Large Some ii) Pure oligopoly Few firms Homogeneous Product Small Some iii) Differentiated oligopoly Few firms Differentiated products Small Some c) Monopoly One Unique product without close substitutes Very Small Considerable

19. w

21. Deadweight loss – a measure of the aggregate loss in well-being of the participants in a market resulting from an inefficient output level.

29. Kinked demand curve model

32. Dominant firm

40. Pricing Strategies for Firm With Market Power

57. Prices at university computer facility

65. Price matching A strategy in which a firm advertises a price and promises to ‘match’ any lower price offered by a competitor. Advertisement “ Our price is P. If you find a better price in the market, we will match that price. We will not be undersold.”

73. Thank you and all the best