Question

Read the given passage and answer the questions:

In common language the term market means a specific place where buyers and sellers of a commodity meet and exchange their goods. But in Economics it is not necessarily a place but it is an arrangement through which buyers and sellers come in contact with each other directly or indirectly and exchange of goods takes place among them. Market can be classified on the basis of place, time and competition. Market on the basis of competition is perfect competition and imperfect competition. Perfect competition is an imaginary concept of market and in reality, we observe various types of imperfect competition like monopoly, duopoly, oligopoly and monopolistic competition. In practice monopolistic competition is used. In this market there are some features of perfect competition and monopoly acting together. The uniqueness of this market lies in the fact that a difference is made between cost of production and selling cost. Selling cost refers to the cost incurred by the firm to create more demand for its product and increase the volume of sale. It includes expenditure on advertisement, hoardings, window display etc.

Questions:

1. Explain the concept of Market from Economic sense.
2. Write the classification of Market.
3. Write your own opinion about selling cost.

Answer 1

1. It is an arrangement through which buyers and sellers come in contact with each other directly or indirectly and exchange of goods takes place among them.
2. Markets can be classified on the basis of place, time and competition. The market on the basis of competition is perfect competition and imperfect competition. Various types of imperfect competition like monopoly, duopoly, oligopoly and monopolistic competition on the basis of place, are divided into local national and International On the basis of time, it is divided into very short period. short period. long period and very long period.
3. In my opinion, selling costs are a vital aspect of a firm's strategy to differentiate its product and stimulate demand. These costs, which encompass advertising and promotional activities, are essential in competitive markets to inform potential customers and persuade them to choose one product over another.