PERFECT
COMPITION AND OLIGOPOLY MARKET
We know that exact perfect competition market is not existing
in real life but there is some close example exist first one is “share market”. In share market everyone
is selling the same kind of shares. So, the homogenous product was there. There
are so many buyers and so many sellers. But the thing which make difference
that firm earns normal profit this is not necessary in share market.
There are some more examples like milk producer. Now-a-days
we get different type of milk like low fat or flavored milk but earlier it is
just same type of milk we get. So the product is homogenous and price is almost
same and so many sellers and buyers, and free entry and exit of firms.
Next market is Oligopoly in this no. of buyers is
limited. We can say that Telecom service provider market is an example of
oligopoly market because only 10-12 big players are there. But in this type of
market there is very high chance of creating cartel.
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