In the general sense market is a place where buyers and sellers interact for a deal. But in Economics market refers to not only the place where buyers and sellers interact with each other but also of buyers and sellers are free to sell or purchase goods as well as to determine the place of the product.
In modern days different it means of communication like telephone, fax, internet, etc. Made a purchase and sale of good easier. The meaning of the market can be generalized in a wider sense. Girls market is a mechanism through which buyers and sellers interact and deal a bargain.
According to Cournot,'' Economics understands buy.com market not only particular place in which things are pouch and sold but the whole of any region in which buyers and sellers are in such free intercourse with each another that the prices of the same goods tend to equal easily and quickly.''
Characteristics of market
The following three points need to be considered in the definition of the market. They are
1. Expense of buyers and sellers of the commodity.
2. The establishment of contact between the buyers and sellers.
3. There should be a price for the commodity bought and sold in the market.
Types of market
The market can be classified on the basis of different criteria search as region, industry, the volume of transaction, types of competition, etc.
A. On the basis of geographical coverage;
1. Local market: In this market goods are products at the local level and consumed. Generally, perishable good night vegetables, fruits, milk, and military goods like bricks, stones, etc are sold and purchase in the local market.
2. National market: In this market goods are sold and purchase all over the country. Sometimes it is not possible to establish large industries in all the regions of the country. Goods produced in one place are distributed in all the regions of the country depending upon the demand for the products in different regions.
3. Regional market: The market is the market that is specific to a particular region. Commodities that are demanded and supplied over a region have a regional market.
4. International market: If goods and services are traded all over the world the market is called global market or international market. When demand and supply conditions are influenced at the global level we have an international market. e.g. Gold, silver, cell phone, etc. Tea and machinery items, etc.
B. On the basis of the volume of transaction
1. Wholesale market: If the goods are sold and purchased in bulk quantity it is said to be wholesale market. In the wholesale market, goods are purchased for further sale or final consumption.
2. Retail market: If the goods are sold in purchase in small quantity, it is said to be retail market. In the retail market, goods are purchased for final consumption only. The price of goods is higher in the retail market as compared to the wholesale market.
C. On the basis of the Degree of competition
1. Perfect competition market: A market characterized by the assistance of a large number of buyers and large numbers of cells during homogeneous commodity is called a perfect competition market. In this market, there is perfect knowledge among buyers and sellers about market conditions.
2. Imperfect market: In this market, there is some level of competition among sellers. The price of the product is not the same in all cases. There is some control of sellers over the market. In perfect market may further be classified as;
a. Monopoly: It is a market structure where there is a single producer seller of a commodity that has no close substitutes and there are strong barriers to entry.
b. Oligopoly: A market structure that is characterized by few firms or sellers producing homogenous or differentiated products is the oligopoly market.
c. Monopolistic competition: Monopolistic competition is a market structure where there is a large number of buyers and sellers, buying and selling differentiated products. It is characterized by the presence of both, a Monopoly as well as a competitive element.
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