Q.(a) How the market can be classified on the basis of Economics?

(a) On an economic basis, markets are classified by the degree of competition — perfect competition, monopoly, monopolistic competition, oligopoly and duopoly. (b) Businesses protect consumers by offering quality, fair prices, honest information, good service, grievance handling and fair trade.

(a) Classification of Markets on the Basis of Economics (Competition)

1. Perfect competition — a market with a very large number of buyers and sellers dealing in a homogeneous product at a single price, with free entry and exit.
2. Monopoly — a market with only one seller of a product that has no close substitute, giving that seller full control over supply and price.
3. Monopolistic competition — many sellers selling similar but slightly differentiated products (through brand, quality or design), each having some control over price.
4. Oligopoly — a market dominated by a few large sellers, where the action of one firm strongly affects the others.
5. Duopoly — a special case with only two sellers of a product. (On the buying side, monopsony is a market with a single buyer.)

OR

(b) Role of Business in Consumer Protection (any 5)

1. Supplying quality goods — providing safe, standard and quality products that meet consumers' needs.
2. Fair prices — charging reasonable prices and not exploiting consumers through overcharging.
3. Honest information and advertising — giving true information about products and avoiding false or misleading advertisements. …