Market Market structure refers to economically significant features of a market, which affects the behavior and working of firms in the industry. According to Pappas and Hirschey, “Market structure refers to the number and size distribution of buyers and sellers in the market for a good or service.” Characteristics of Markets 1. Market is not confined to one particular place, but over an entire area where buyers and sellers of a product (or) the commodity is spread over. 2. Buyers and Sellers must be present, though physical presence is not necessary. In modern times, we sell goods through various types of media: Telephonic Media, Electronic Shopping Markets, Websites, etc. 3. There must be a commodity that is bought and sold. 4. There should be free interaction between buyers and sellers so that both agree on one price of the commodity. FORMS OF MARKET Economists have classified markets...
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