There are various dimensions of a market. Any market may be classified on the basis of these dimensions. These dimension can be taken as criteria for classification.

On the basis of free intercourse or degree of competition

Perfect markets

Imperfect markets

Perfect Markets

A market is said to be perfect, when all the potential sellers and buyers are promptly aware of the prices at which transaction takes place. Any buyer can purchase from any seller.

The principle underlying a perfect market expects that there must be a uniform price for any one standardized commodity at a particular time at any one place. Secondly, there should not be restriction on the movement of a commodity and thirdly, there must be a good number of buyers and sellers.

Imperfect Markets

Imperfect markets are where, some buyers or sellers or both are not aware of the offers made by others. Restrictions for movement of goods exist and different price, rule in the market for the same at a particular time.

• Monopoly market

It is a market situation, wherein there is only one seller of a commodity.

• Duopoly market

It has two sellers of a commodity in the market.

• Oligopoly market

In this market there are more than two but still a few sellers of commodity.

• Monopolistic competition

A large number of sellers deal in heterogeneous and differentiated form a commodity.

Agri-
Knowledge
(Agricultural Marketing)