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Question
How the market can be classified on the basis of Economics?
Solution
The Market can be classified on the basis of Economics as follows:
- Perfect Market: A market is said to be a perfect market if it satisfies the following conditions:
- A large number of buyers and sellers are there.
- Prices should be uniform throughout the market.
- Buyers and sellers have a perfect knowledge of the market.
- Goods can be moved from one place to another without restrictions.
- Imperfect Market: A market is said to be imperfect when
- Products are similar but not identical.
- Prices are not uniform.
- There is a lack of communication.
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