What is Market? Meaning
Usually, Market means a place where buyer and seller meets together in order to carry on transactions of goods and services.
But in Economics, it may be a place, perhaps may not be. In Economics, market can exist even without direct contact of buyer and seller. This fact can be explained with the help of the following statement.
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"Market refers to arrangement, whereby buyers and sellers come in contact with each other directly or indirectly, to buy or sell goods."
Thus, above statement indicates that face to face contact of buyer and seller is not necessary for market. E.g. in stock or share market, buyer and seller can carry on their transactions through internet. So internet, here forms an arrangement and such arrangement also is included in the market.
Classification or Types of Market - Chart
The classification or types of market are depicted below.
On the basis of Place, market is classified into:
- Local Market or Regional Market.
- National Market or Countrywide Market.
- International Market or Global Market.
On the basis of Time, market is classified into:
- Very Short Period Market.
- Short Period Market.
- Long Period Market.
- Very Long Period Market.
On the basis of Competition, market is classified into:
- Perfectly competitive market structure.
- Imperfectly competitive market structure.
Both these market structure widely differ from each other in respect of their features, price etc. Under imperfect competition, there are different forms of markets like monopoly, duopoly, oligopoly and monopolistic competition.