The type of market depends on the degree of competition prevailing in the market. Broadly speaking, there arc two types of competition prevailing in the markets: (i) Perfect competition and (ii) Imperfect competition. Competition. Modem economists draw a distinction between perfect competition and pure competition. Perfect competition is a wider concept. In order that there should be perfect competition, the market should satisfy not only the conditions of pure competition hut also a few ,as we shall show on the next page.
Imperfect competition may also take severn I forms, e.g., monopolistic competition, oligopoly, duopoly or monopoly. Thus, at one extreme stands perfect competition and at the other monopoly. In between these  there arc all degrees of competition or lack of competition. Now we shall study these forms in some detail. We take first pure and perfect competition.