Define the four types of product market with at least one ex

Define the four types of product market with at least one example of each.

Solution

The four types of product market are:

OLIGOPOLY: It is a situation where there are only a few sellers in a particular economy who control a particular commodity. They can certainly influence prices and affect the competition. In India, we can have an example of this as mobile telephony - There are only a few operators, examples of which are: Airtel, Idea, BSNL, Reliance

PERFECT COMPETITION: It is an economic situation that is actually a myth, that is characterised by large number of buyers and sellers for that product who have perfect knowledge of what it does and how it works. An Indian fish market might be an example of something close to this (though real \"perfect competition\" doesn\'t really exist.) At the fist market, lots of sellers gather together to try to sell the same wares, and lots of customers try to buy them with a good knowledge of what they are buying.

MONOPOLY: It is a market dominated by one seller. The cable company is an example of this in India.

MONOPOLISTIC COMPETITION: Here, there are lots of sellers selling similar products that don\'t differ a whole lot in terms of characteristics or price. In India, we have an example of this in the banking system. After financial sector reforms in 1992, the banking system in India has become much more competitive with lots more banks offering similar products at similar prices.