Economics Class 12 Revision Notes Microeconomics Chapter 6 Market Equilibrium Non Competitive Markets

1. Market It refers to a mechanism or an arrangement that facilitates contact between the buyers and sellers for the sale and purchase of goods and services.

2. Monopoly It is a form of the market in which there is a single seller of a product with no close substitutes.
Example- Railways in India are a monopoly industry of the Government of India.

3.Features of Monopoly
(i) One seller and large number of buyers
(ii) Restrictions the entry of new firms
(iii)No, close substitutes
(iv)Full control over price
(v) Price discrimination

4. Price Maker
A monopolist is a price maker. It means that he can fix whatever price he wishes to fix for his product.

5. How does a Monopoly Market Structure Arise?
(i) Government licensing
(ii) Patent rights
(iii) Cartels „
(iv) Natural occurrence

6. Monopolistic Competition It, is a form of the market in which there are many sellers of the product but the product of each seller is some what different from that of the other.

7. Features of Monopolistic Competition
(i) Large number of buyers and sellers
(ii) Product differentiation
(iii) Freedom of entry and exit of firm
(iv) Selling cost
(v) Less mobility
(vi) Lack of perfect knowledge
(vii) Non-price competition
(viii) More can be sold at lower price

8. Oligopoly It is a form of the market in which there are a few big sellers of a commodity and a large number of buyers. Each seller has a significant share of the market.

9.Features of Oligopoly
(i) A few firms
(ii) Large number of buyer
(iii) Entry barriers
(iv) High degree of interdependence
(v) Not possible to determine firm’s demand curve
(vi) Formation of cartels
(vii) Non-price competition

10.Firm’s demand curve is indeterminate under oligopoly becaim there is a high degree of interdependence bet ween the firm.

11. Shape of demand curve under different market
(i) It slops downwards under monopoly. But it is not ver\ elastic.
(ii) It slops downwards under monopolistic competition. But ii is relatively more elastic.
(iii) It is indeterminate under oligopoly.