Q.Classify the market on the basis of Competition.

By degree of competition, markets are classified into perfect competition and imperfect competition, the latter covering monopoly, monopolistic competition, oligopoly and duopoly.

In the Tamil Nadu HSC Class-11 Economics syllabus, market structure is classified on the basis of competition as follows:

1. Perfect Competition — a very large number of buyers and sellers dealing in a homogeneous product, with free entry and exit, perfect knowledge and a single ruling price. The firm is a price-taker.

2. Imperfect Competition — where the conditions of perfect competition are not fully met. It includes:

   • Monopoly — a single seller of a product with no close substitutes.
   • Monopolistic Competition — many sellers offering differentiated (similar but not identical) products, e.g. toothpaste, soap. …