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Market Structure
Dr.Deepakshi Gupta
Perfect competition
characteristics
 Infinite buyers and sellers
 Zero entry and exit barriers
 Perfect factor mobility
 Perfect information
 Zero transaction costs
 Profit maximization  Homogeneous products
Perfect competition
Monopolistic competition
Product differentiation
Many firms
Independent decision making
Market Power
Selling cost
AR>MR
Monopolistic competition
Monopoly
 Profit Maximiser
 Price Maker
 High Barriers to Entry
 Single seller
 Price Discrimination:
Oligopoly
 Profit maximization conditions:
 Ability to set price
 Entry and exit
 Number of firms
 Long run profits
 Product differentiation
 Perfect knowledge
 Interdependence:
KINK DEMAND CURVE