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Ordinarily, the term market refers to a particular place where goods are purchased and sold.
But, in economics, market is used in a wide perspective. In economics, the term market does
not mean a particular place but the whole area where the buyers and sellers of a product are
spread.
According to Prof. R. Chapman, The term market refers not necessarily to a place but always to
a commodity and the buyers and sellers who are in direct competition with one another. In the
words of A.A. Cournot, Economists understand by the term market, not any particular place in
which things are bought and sold but the whole of any region in which buyers and sellers are in
such free intercourse with one another that the price of the same goods tends to equality, easily
and quickly. Prof. Cournots definition is wider and appropriate in which all the features of a
market are found. (tutorsonnet )
Market structure is defined as the particular mix of characteristics which determine the nature of
competition and pricing in a market. Important market characteristics are:
Pure Monopoly- A monopoly refers to a market structure where a single firm controls the
entire market. In this scenario, the firm has the highest level of market power, as
consumers do not have any alternatives. As a result, monopilists often reduce output to
increase prices and earn more profit.
The following assumptions are made when we talk about monopolies: (1) the monopolist
maximizes profit, (2) it can set the price, (3) there are high barriers to entry and exit, (4)
there is only one firm that dominates the entire market.
Bibliography
quickonomics. (n.d.). Retrieved from https://quickonomics.com/2016/09/market-structures/