Name the two types of markets
1. Perfect competition market: This type of market consists of a large number of buyers and sellers who have access to perfect information, homogeneous products, easy entry and exit, and no individual buyer or seller has control over the market price.
2. Imperfect competition market: This type of market is characterized by a limited number of sellers or buyers who have some degree of control over the market price. It includes various subcategories such as monopoly (market with a single seller), oligopoly (market with a few large sellers), and monopolistic competition (market with many sellers offering differentiated products).
The two types of markets are:
1. Product Market: It refers to the market where goods and services are bought and sold. It involves the exchange of tangible products or services between buyers and sellers. Examples include the market for automobiles, clothing, or food.
2. Financial Market: It refers to the market where financial assets such as stocks, bonds, currencies, and derivatives are bought and sold. Financial markets enable the allocation of capital between users and suppliers of funds. Examples include stock markets, bond markets, and foreign exchange markets.