Market , Microeconomics


What is a Market?


A geographically stated area where buyers and sellers interact or communicate to decide the price of a product or a series of products.

Markets vs. Industries

Industries are the supply part of the market.

Defining the Market

The market parameters should be set before an evaluation of the market occurs.


Purchasing a product at a less price in one location and selling at a large price in another market.

Competitive vs. Noncompetitive Markets

– Competitive Markets

Due to the large number of buyers and sellers, no particular buyer or seller can effect the price.

Instance: Most agricultural markets

– Noncompetitive Markets

Markets where individual manufacturers can effect the price.

Instance: OPEC

-Market Price

– Competitive markets maintain one price.

– Noncompetitive markets may set various prices for the particular product.

Market Definition - The Extent of a Market

– Market Definition

Which buyers and sellers must be involved in a particular given market?

– Market Extent

States the boundaries of the market


variety of products

– Instances

– Geographic boundaries

Gold: Karachi vs Lahore 

Housing: Rawalpindi vs. Islamabad 

– Variety of Products

Gasoline: super, regular, & diesel

Cameras: point & shoot, Polaroid, digital

– Markets for Prescription Drugs

Well-established markets - therapeutic drugs

Ambiguous or confusing markets – painkillers


Posted Date: 7/24/2012 6:59:08 AM | Location : United States

Related Discussions:- Market , Assignment Help, Ask Question on Market , Get Answer, Expert's Help, Market Discussions

Write discussion on Market
Your posts are moderated
Related Questions

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Growth of Agricultural Production and Productivity: Post-independence period was marked by severe and recurrent shortages of foodgrains. Dependence on imports of foodgrains wa

Illustrate the Economic Growth Up until 1800 growth rates of human populations were glacial. Population growth between 5000 B.C. and 1800 averaged less than one-tenth of a perc

a more simple explanation of the group equilibrium in the short and long run

assingnment on production cost

Ask question #Minimum 100 words accepteFill out this National Council on Economic Education worksheet: Technology and Monopolies (Links to an external site.) Now, pretend that you

Working of IFC: The IBRD loans are available only to member-country governments or with the guarantee of member-country governments. Further, IBRD can only make a loan but it

Perfect competition has the following characteristics: 1. Large number of firms - There are a large number of firms in the market. Due to this each firm produces a very small fr

what is oxidizing agent