what is the meaning of business?
Business is the activity of making one’s living or making money by producing or buying and selling of products (such as goods and services).the main motive of every business organization is to earn a maximum profit if the business can go into the losses then the businessman can leave the firm without any existence.business is generally started in a market. Now the question has been raised that ;
what is the market?
The market is the place where many buyers and sellers selling their product of different kinds and the customers are attracted to buy the new products if they like, and they need and their wants.customer is the kingpin of the market if the customer is not satisfied with the products they cannot buy the product and the seller can go into the losses, and they have to leave the market. The market can further be divided into four parts;
Perfect competition is said to exist when there is a large number of buyers and sellers selling the same product.price is also homogenous for all the products. A large number of buyers and sellers can buy and sell their product no restrictions on the entry of the new firm.if the business can go into the losses they can leave the firm or if they want to start a business they can join with all the other firms.in perfect competition the quantity of the products should be a change in their size, quality, packing, brand E.T.C. in perfect competition buyers can judge the quality of the products before buying the product. If they like then they purchase again if they not like they never purchase that particular product.
In a monopoly competition, there is a single seller with no close substitute.in a monopoly competition, the seller has full control over its price.in a monopoly competition the government has granted some rights ;
- Patent rights -this right has been granted after the release of the new product in the market.
- Cartels-it refers to the formation of a group to fix the price of the product in the market.
In monopolistic competition, the producer sells that product which is differentiated from each other. There are no perfect substitutes for each other. In monopolistic competition product differentiation, they can sell different products in the market. In Monopolistic competition, independent decision-making whatever decision they can be taken for their product it should be right for their product. In monopolistic competition freedom of entry and exists if the firm can go into the losses, they can leave the firm without any existence or not even ask anyone in the market.
In an oligopoly market, there are few big firms and a large number of buyers and sellers of the product. These firms prefer not to compete for price wars such as advertising, product differentiation, and barriers.oligopoly can result from various forms of collusion which reduce competition and lead to higher prices for consumers.oligopoly have their own market structure. Each oligopoly has a concern about each and every action taken in the market.
In every market, there are no restrictions to the buyers they can freely enter and if they think they are not providing good services and their business can go to the losses. Then they can leave the firm. In every, the competition between sellers is raising and down monthly some sellers because of their increasing sell and some try to extend their sell to earn maximum profit in the business.
characteristics of the market are :
- a market is a place where anyone can enter without any restrictions .
- In the market no one can judge the market on the basis of high income and low income and market can never be divided on the basis of low-income people and high-income people.
- a market is a place where each and individual can be treated equally.
- The prices should also be the same for all the peoples for the same thing at the same time whatever products price they will be asked it should be the same as all.
features of a market :
- One commodity-a market is a place where commodities are bought and sold at retail or wholesale prices. The economic market does not refer to a particular place but it refers to the market of a commodity or commodities for ex-a wheat market, a tea market and so on.
- Area-market does not refer to a fixed location.it should be anywhere at any place is called a market.
- Buyer and sellers-in market there are different buyers and sellers there are no restrictions to the buyer and sellers.they all present in the place of markets.
- Perfect knowledge of the market-buyer and sellers have perfect knowledge of the market that what is the price of the product is the producer is not be expired and it should not be sold to the market. Consumers should also check their rights and policies before buying the product.
- One price-this is possible in the perfect competition that price should be the same for all the buyers and sellers.