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Market is a perfect medium for interaction of sellers and purchasers to exchange a specific product or service. As per the feature, there are main two types of market

  1. Physical

Here, both buyers and sellers are present physically for exchanging the product. For example – all kind of bazar, shopping mall, road side markets, etc.

  1. Online or virtual

In these markets sellers and consumers never meet each other, products details are introduced through internet and computer.

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Classification of marketplace

Markets are generally categorized on the basis of several factors in microeconomics. That is discussed before.  Now we are going to discuss about the markets which are classified on the basis of number of firms existing in those markets. Those are enlisted below with their specification.

  1. Fully competitive

It is a huge marketplace with lots of sellers and buyers for more or less same types of product. Customers are clearly informed about the quantity and price of the products here. Vegetable markets, fruits markets, grocery market, etc. are the example of this types of markets.

  1. Total monopoly

In this marketplace, only one seller is existent for selling a specific good, so no competition is exist there for that seller. Hence, seller can fix any price rate as they desire. Customers are bound to pay that price rate.

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  1. Oligopoly

This is worse than fully competitive market but better than total monopoly market. As few competitors are existing here. The price and situation depends on the numbers of competitors exist in the market.

  1. Monopolistic competition

In this market, single producer make different product. Hence for the short run, the market situation is as like as total monopoly, but for the long run, it turns into fully competitive condition.

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