Types of Markets

1. Competitive (Perfect) market. This is a market where buyers and sellers have no ability to influence the price in the    Prices are determined by the market forces of demand and supply.

Characteristics/Features of competitive market

• Large numbers of buyers and sellers in the market.
• Identical/homogenous products sold by all firms,
• the freedom of entry into and exit out of the industry or perfect resource mobility
• Perfect knowledge of prices and technology.
• No price control.
• Perfect mobility of factors of production, the factors of production are completely mobile leading to factor-price equalization throughout the market.
• Cheap and Efficient Transport and Communication
• the consumer has plenty of choice when buying goods or services

2. Imperfect market. This is a market where the buyers or sellers have ability to influence the price set in the market by either controlling supply or
3. Goods market: This is a market where goods are
4. Commodity market: This is a market where goods and services are
5. Factor market. This is a market where factors of production are For  example land, labour, capital, entrepreneurship

Note. Factor price is the monetary reward to factors of production for their contribution in the production process. For example wages, interest, profit and rent.

6. The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery
7. Future (Forward) market. This is a market where commodities are traded for future