Chapter Five Market and Market Structures
Dr gouffi
souaad
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1- What is the market?
The market is defined as the space or place where sellers of goods or services meet with their
buyers, whether this meeting is in the same place or through means of communication, and
this space can be a village, neighborhood, city, country, or region, and it may include the
entire world.
Supply: Refers to the amount of goods and services that sellers are willing to sell at a given
price.
Demand: Demand refers to the amount of goods, services or capital that buyers are able and
willing to buy at a certain price, according to their income and preferences.
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2 divisions of market structures
The nature of the markets is what determines the costs of production, sales, and thus profits
for the institutions, and the industry structure is divided into four sections:
A- Perfectly competitive market:
In this context, we will talk about the concept of perfect competition, balance in its market,
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and the importance of the model as a standard reference
A perfectly competitive market is defined by three elements; Stochastic atomicity,
transparency, and homogeneity.
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B . market monopoly
In this context, we will talk about the concept of total monopoly, its divisions, balance in its
market, and its effects.
Concept and characteristics
• . Types of monopoly
In terms of source: legal, actual and natural.
In terms of the monopolist person: public and private
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C. Monopolistic competition
In this context, we will talk about the concept of monopolistic competition and its
characteristics, the balance in its market and its economic effects.
The structure of monopolistic competition takes away from absolute monopoly the ability
of the producer to find an independent market, through advertising, as the products are similar
in terms of content but different in form (brands, trademark).
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D. Oligopoly
In this context, we will talk about the concept of oligopoly as one of the sections of the
market structure, and how to balance it, while giving realistic examples of it in the same
context.
Oligopoly means the establishment of a small number of producers, so that each of them
produces a large proportion of the total output, without agreeing among themselves to
determine the quantity of production or the selling price. This phenomenon has become one of
the dominant phenomena in the world.
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