ECONOMIC INSTITUTION:

Market Transactions

Reporter: Christian Don M. Morales

 1 MARKET

MARKET Paminaw jud

2
TOPICS TO STRUCTURE S mo kay taas
TACKEL MARKET raba ni nga
3 report😁
TRANSACTIONS
TYPES OF
4
MARKET
Add your title

01 MARKET
> is any structure that
allows buyers and sellers
to exchange any type of
goods, services and
information.
KEY TAKEAWAYS
•A market is a place where buyers and sellers can meet to
facilitate the exchange or transaction of goods and services.
•Markets can be physical like a retail outlet, or virtual like an
e-retailer. Other examples include the black market, auction
markets, and financial markets.
•Markets establish the prices of goods and services that are
determined by supply and demand.
 The 3
Basic
Problems

OF THE CAPITALIST ECONOMY

 What goods
and services
should be
produced?
How should Who
these goods consumes
and services these goods
be produced? and
services?
MARKET STRUCTURE
- is the interconnected
characteristics of a market,
such as the number and
relative strength of buyers and
sellers and degree of collision
among them, level and forms
of competition, extent of
product differentiation and
ease of entry into and exit
from the market.
 04
TYPES OF
MARKET
STRUCTURE
 PERFECT COMPETITION
many buyers and sellers
Perfect Competition : describes a market structure where a
large number of small firms compete against each other.
None of the firms can influence market prices.
 OLIGOPOLY
Several large sellers with considerable control over the prices
Oligopoly : describes a market which is
dominated by only small number of
firms. That results in a state of limited
competition. The firms can either
compete against each other or
collaborate. By doing so, they can use
their collective market power to drive
up prices and earn more profit.
SHELL PETRON CALTEX

EXAMPLES OF OLIGOPOLY
 MONOPOLY
Single seller with considerable control over the prices
Monopoly : refers to a market structure where a single firm controls the
entire market. In this scenario, the firm has the highest level of market
power, as consumers do not have any alternatives. As a result,
monopolies often reduce output to increase prices and earn more
profit.

OROQUIETA CITY
WATER DISTRICT
 MONOPSONY
Single buyer with considerable control over demand and
prices
Monopsony: is a market structure in which a single buyer
substantially controls the market as the major purchaser of
goods and services offered by many would be sellers.
 - may involve goods, services,
MARKET informations, currency of any
TRANSACTIONS combination of these that
pass from one party to
another.
How Market Transactions Work?
Markets are arenas in which buyers and
sellers can gather and interact. In general,
1
only two parties are needed to make a
trade, at minimum a third party is needed
to introduce competition and bring
balance to the market. As such, a market
in a state of perfect competition, among
other things, is necessarily characterized
by a high number of active buyers and
sellers.
 TYPES
OF
MARKET
 FINANCIAL MARKET
The blanket term financial market refers to any place where
securities, currencies, bonds, and other securities are traded
between two parties. These markets are the basis of
capitalist societies, and they provide capital formation and
liquidity for businesses. They can be physical or virtual.
The financial market includes the stock market or
exchanges such as the New York Stock Exchange,
Nasdaq, the LSE, and the TMX Group. Other kinds
of financial markets include the bond market and
the foreign exchange market, where people trade
currencies.
 BLACK MARKET
-refers to an illegal market where transactions occur
without the knowledge of the government or other
regulatory agencies. Many black markets exist in order to
circumvent existing tax laws. This is why many involve cash-
only transactions or other forms of currency, making them
harder to track.
 AUCTION MARKET
An auction market brings many people together for the sale
and purchase of specific lots of goods. The buyers or bidders
try to top each other for the purchase price. The items up for
sale end up going to the highest bidder.
The most common auction markets involve livestock and
homes, or websites like eBay where bidders may bid
anonymously to win auctions.
 PHYSICAL MARKET
Is a set up where buyers physically meet the sellers and
purchase the desired merchandise from them in exchange
of money. Shopping malls, department stores, retail stores
are examples of physical markets.
 NON-PHYSICAL / VIRTUAL MARKET
A nonphysical and borderless spatial dimension that exists in
the digital domain, in which exchange relations and
transactions take place at different levels through digital
interactions supported by communication technologies. Also
understood as an umbrella term for e-commerce.
 KNOWLEDGE MARKET
A Knowledge Market is a meeting to match up people who
need learning, with people who can provide their learning.
Knowledge Markets are commonly used within Communities
of Practice. Purpose. The purpose of a Knowledge Market is
to connect people who have problems with those that can
potentially solve the problems.