Market structure I

Hey everyone, this my all4one post for this week, I will be straight about it because we have a lot to do today. Today we will be treating Market structure according to an economist point of view, with the following outlines;
Outline
• Meaning of market structure
• Types of market structure
• Additional quote.

So let's begin;

Market structure

To truly understand market structure, we have to understanding the meaning of each term in the definition which is Market and Structure

Definition÷ Market can be defined as any place at a given period of time where buyers and sellers meet for the exchange or buying of wants satisfying goods.

Definition÷ Structure can be defined as a system

From the above you can coin the definition that, market structure can be defined as a system which a market follows.

Source

This takes us to;

Types of market

We have various categories of market, we will be taking the broad aspect which consist of all which are,

Types of market according to goods and services rendered

1. Capital market
   It's a market where long term loans are obtained to run capital project.

2. Money market
   Opposite of capital market, where short term loans are obtained.

Source

1. Consumer goods market
   Where semi-finished or finished goods are been sold for consumption.

Types of market according to price

There are only two types which are perfect market and imperfect market.

Perfect market

Perfect market can be defined as a situation whereby neither the buyer or seller has the ability to influence the price of commodities, because they are many. It is the everyday market we meet, although some of us have experienced the other, but this situation is most common.

Features of perfect market

• Homogeneous goods
  Similar goods are been sold by buyers there by letting demand and supply control the market price.

• Many sellers and buyers
  Many sellers leads to bargaining of price of goods, and also many buyers helps the sellers not to be exploited.

• Adequate information about the market
  Both buyers and sellers find out the prevailing market price.

• portable goods.

Advantage of perfect market

• Freedom of entry and exit of producers/sellers
  Producers and buyers should not be restricted in leaving and entering the market, it helps came the market stable.

• No discrimination against any customers
  Equal treatment to all customer, that is same price to all.

• Each producers and sellers are price taker.
  Producers or buyers do not dictate the price they take the price at hand.

Source

Disadvantage of perfect market

• Waste of resources
  Due to underutilization of resources.

• Possibility of unemployment
  Due to underutilization, laying of workers occurs

• Inadequate resources to embark on research.

Conclusion

Due to emergency, I will not be completing this post at a go, meet me to tomorrow for the complete aspect of this post, thanks for bearing with me. Bye.