1. Perfect Competition Market
Large number of buyers and sellers.
Homogenous product is produced by every firm.
Free entry and exit of firms.
Zero advertising cost.
Consumer Have all Knowledge about market
No government intervention.
No transportation costs.
Every firm is a price taker.
2. Monopoly Competition Market
One Seller and Large Number of Buyers.
No Close Substitutes.
Difficulty of Entry of New Firms.
Monopolist firm can control the supply.
Restriction on entry.
3. Monopolist Competition Market
Freedom of entry and exit.
Firms produce differentiated products.
Firms have price inelastic demand; they are price
makers because the good is highly differentiated.
Selling cost determine the demand of product.
Firms make normal profits in the long run but
could make supernormal profits in the short term.
4. Oligopoly Competition Market
Entry and Exit Barriers.
Lack of Uniformity.
Sell homogeneous Products
National income means the value of goods and
services produced by a country during a financial
year. Thus, it is the net result of all economic
activities of any country during a period of one
year and is valued in terms of money
1. Gross Domestic Product (GDP)
P=Price of goods and
Q=Quantity of goods and
(X-M) =Export minus import
2. Gross National Product (GNP)
GNP=GDP+NFIA (Net Factor Income from Abroad)
or, GNP=C+I+G+(X-M) +NFIA
Hence, GNP includes the following:
Consumer goods and services.
Gross private domestic investment in capital goods.
Net exports (exports-imports).
Net factor income from abroad.
3. Net National Product (NNP)
5. Personal Income (PI)
Personal Income is the total money income
received by individuals and households of a
country from all possible sources before direct
6. Disposable Income (DI)
From consumption approach,
DI = Consumption Expenditure + Savings
7. Per Capita Income (PCI)
PCI=Total National Income / Total National
Q.1 What is mean of market? Derived different types of market.
Q.2 Explain the pure completion market with their characteristic (feature).
Q.3 Explain the monopolistic competition market with feature.
Q.4 Explain the oligopoly market with feature.
Q.5 What is national income? Explain in detail
Q.6 explain the different concept of national income.