The term structure refers to something that has organization and dimension – shape, size and design; and which is evolved for the purpose of performing a function.

Types of Market

On the basis of competition, markets may be classified into the following categories:

Perfect Market

A perfect market is one in which the following conditions hold good:

There is a large number of buyers and sellers:

All the buyers and sellers in the market have perfect knowledge of demand, supply and prices:

Prices at any one time are uniform over a geographical area, plus or minus the cost of getting supplies from surplus to deficit areas:

The prices are uniform at any one place

The prices of different forms of a product are uniform, plus or minus the cost of converting the product from one form to another.

Imperfect markets

The markets in which the conditions of perfect competition are lacking are characterized as imperfect markets. There are different types of imperfect markets.

a) Monopoly Market: Monopoly is a market situation in which there is only one seller of a commodity. He exercises sole control over the quantity or price of the commodity. In this market, the price of a commodity is generally higher than in other markets. Indian farmers operate in a monopoly market when purchasing electricity for irrigation. When there is only one buyer of a product the market is termed as a monopsony market.

b) Duopoly Market: A duopoly market is one that has only two sellers of a commodity. They may mutually agree to charge a common price which is higher than the hypothetical price in a common market. The market situation in which there are only two buyers of a commodity is known as the duopsony market.

c) Oligopoly Market: A market in which there are more than two but still a few sellers of a commodity is termed as an oligopoly market. If a market has a few (more than two) buyers is known as an oligopoly market.

d) Monopolistic Competition: When a large number of sellers deal in heterogeneous and differentiated forms of a commodity, the situation is called monopolistic competition. The difference is made conspicuous by different trademarks on the product. Different prices prevail for the same basic product. Examples of monopolistic competition faced by farmers may be drawn from the input markets. For example, they have to choose between various makes of insecticides, pump sets, fertilizers, and types of equipment.