Market is divided into few different types, discussed as follows:
According to Time:
On the basis of time period following are the types of market:
Day to Day Market:
This type of market contains usually perishable goods. It only contains those kinds of goods which cannot be stored. In this type there is no type of changes can be made in the supply of the good.
Short Period Market:
In this type of market, supply of a goods can be changed but up to certain limit. This limit depends upon the quantity of the good which is stocked.
Long Period Market:
In this type of market there is sufficient time to make even bigger changes in the production and supply of the good. These changes include installing more numbers of industries etc.
According to Location:
On the basis of the location of the industry following are the types of market:
Local market is limited because this type of market is installed by local people. Transport is also a big problem in this type.
In this market the supply of the goods are limited to a specific region. The goods produce in these types of industries are only demanded in related area.
The goods produce in this type of industries are demanded within the country. These goods have national market because in whole the price for them is same.
This type of market is spread at least more than a one country that’s why large number of goods are produced to meet the demand by the consumers.
According to the Nature of Competition:
According to the competition between the different suppliers of a good market is divided into following kinds:
A market which works on the following conditions is known as perfect market.
Free Entry and Exit:
There should be no restriction on the entry and exit of the customers or firms.
Large Number of Buyers and Sellers:
There should be large number of buyers and sellers in the market so that quantity of supply and demand does not fall.
Perfect Knowledge of the Market:
In this market the buyer of the product must be fully aware of the terms and condition of the market.
When some of the conditions of the perfect market are not fulfilled then that type of market will be called as imperfect market. Imperfect market may be of the following types:
The condition in which only two producers have the whole control of the supply of a good over the whole market will be known as duopoly.
In the market where more than two (almost four or five) firms take the responsibility of the supply of the good in the market is called oligopoly.
Monopoly is the market in which all the control of the supply of the products is in the hands of one single firm.