Market Types, Supply & Demand, GDP, Unemployment, Inflation
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Item 6: Market
Market: an element that is continuously present in our lives and is formed by the buyers and sellers of a good or service.
Types of Markets
There are several types:
Depending on the type of goods (traded)
- Factor markets: Markets to buy or sell factors of production. Example: working machinery.
- Market for goods and services: Buying or selling merchandise.
According to the number of buyers and sellers
- Perfect competition: Existence of many buyers and sellers and a homogeneous product. Ex: fruit, vegetables.
- Monopoly: A single seller facing many buyers. Ex: a local utility company.
- Oligopoly: Many buyers and few firms. Ex: gas stations, mobile operators.
- Monopolistic competition: Many buyers and sellers and a differentiated product by brand,