Question
Name the two types of market
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The two primary types of markets are:
1. **Perfect Market**: This is a theoretical concept where there are many buyers and sellers, all with perfect information. In a perfect market, products are homogeneous, and there are no barriers to entry or exit. Prices are determined purely by supply and demand.
2. **Imperfect Market**: This includes a variety of market structures that do not meet the conditions of a perfect market. Examples include monopolies (single seller), oligopolies (few sellers), and monopolistic competition (many sellers with differentiated products). In these markets, factors such as brand loyalty, price control, and incomplete information can affect pricing and output decisions.
These classifications help in understanding how various markets operate and the behaviors of firms and consumers within them.
1. **Perfect Market**: This is a theoretical concept where there are many buyers and sellers, all with perfect information. In a perfect market, products are homogeneous, and there are no barriers to entry or exit. Prices are determined purely by supply and demand.
2. **Imperfect Market**: This includes a variety of market structures that do not meet the conditions of a perfect market. Examples include monopolies (single seller), oligopolies (few sellers), and monopolistic competition (many sellers with differentiated products). In these markets, factors such as brand loyalty, price control, and incomplete information can affect pricing and output decisions.
These classifications help in understanding how various markets operate and the behaviors of firms and consumers within them.
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