III. On the Basis of Economics a. Perfect Market: A market is said to be a perfect market, if it satisfies the following conditions: i. Large number of buyers and sellers are there.
ii. Prices should be uniform throughout the market. iii. Buyers and sellers have a perfect knowledge of market.
iv. Goods can be moved from one place to another without restrictions. v. The goods are identical or homogenous.
It should be remembered that such types of markets are rarely found. b. Imperfect Market: A market is said to be imperfect when i. Products are similar but not identical.
ii. Prices are not uniform. iii. There is lack of communication.
iv. There are restrictions on the movement of goods.