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The market
04.12.2013, 23:15
The market

 

 

A market is a set of arrangements through which buyers and sellers make contact and do business. Perfect market is a theoretical model of market, where a lot of buyers and sellers and competition is free.

There are monopoly, duopoly, oligopoly are the models of the market. Monopoly is situation, when there is only one seller or a very limited numerous of sellers in some markets. Pure monopoly is a theoretical market structure where there is only one seller of a commodity or service and where entry into the industry is closed to potential competitors. There is patent, superior talent and huge strategic capital is needed to organize a firm with potential monopoly power. In the U.S. legislation and foreign competitors minimized the danger of monopoly corporations. Duopoly is situation, when there are two sellers of a commodity ore service at the market and oligopoly is situation, when there are 3 and more competitive sellers at the market.

Competition is the main characterize of the market. All businesses compete with one another in selling things, in labour, capital and natural resources. There are new ideas, professional managers; new ways to reduce costs and to make products attractive to consumers are needed business to survive in the face of competition.

So, market is one of the main mechanisms of development of the modern world. 
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