Market: definition and key features

In the literature under the market, as a rule,means the place of sale and purchase of products. But to consider this presentation as complete - a big inaccuracy. Market - a definition that characterizes the system of socio-economic relations in the field of exchange and sale of goods, as well as the absolute recognition of this product by society.

Multifaceted interpretation of the concept

An interesting feature of the term in questionis its variability, due to the development of society, as well as material production. Thus, the original "market" was equivalent to the "bazaar," that is, the place intended for market trading. This fact can be explained by the fact that the appearance of the market is directly related to the period of the decomposition of the primitive communal society. Then the mutual exchange between the communities was characterized by more and more regularity. In addition, implementation was determined by a specific place and time.

ABOUT. Curio, the famous French economist, gives the concept of the market a more complex interpretation. He argues that the market is a definition that reflects the absolute freedom of the relationship between sellers and buyers. Another interesting interpretation is the identification of the market with the exchange of goods, which should fully comply with the laws of commodity-money circulation.

What else?

Often in the literature you can find suchdefinition of the concept under consideration, as a set of sellers and buyers. In addition, often the market is characterized as a type of economic ties between economic entities. In other words, it is a mechanism for activating the interaction of production processes and consumption. Modern literature informs that the market is a definition that is explained as a social form of organization and the further functioning of the economy. This is a set of interrelated elements, the main among which are economic relations between sellers, buyers of goods, as well as intermediaries (they decide the organization of the movement of goods and money). These relations reflect the interests of the subjects of market relations in the economic plan, and also fully ensure the exchange processes with respect to the products of labor.

The market is a concept that causes economic interest

Market - definition in the economy that characterizesthe system of economic relations between the subjects, which covers all stages of the social reproduction process: production, subsequent distribution, exchange and, of course, consumption. The term under consideration is a complex mechanism regulating the economy, based on such elements as various forms of ownership, commodity-money relations, and also the financial and credit system. In other words, it is advisable to consider the market as a specific type of economic system (it is also called an economic system). The concluding interpretation of such a multifaceted concept is the definition of the market as a set of transactions in relation to the purchase and sale of any goods or services.

In the process of acquaintance with the interpretation of the conceptit turned out that the market - a definition that has a huge number of faces. However, as a universal designation, the market should be understood as a mechanism that qualitatively brings together buyers who organize demand and sellers who create a supply of material goods.

Market: Definition and Functions

The essence of the concept under consideration is fully manifested through functional features. Thus, it is customary to distinguish the following market functions:

• Self-regulation of the production of goods: through the activation of the market mechanism, the processes of production and consumption are harmonized automatically, and the indicator of the balance of supply and demand with respect to volume and structure is optimally maintained. Regulation is carried out through the sale and purchase of goods of material production.
• Stimulation: the market has an incentive effect on manufacturers, so they are able to create the necessary goods, while minimizing the cost of production, in order to be able to maximize profit in the future.
• Providing information on production costs, the quantity of the product, its assortment, and quality.

Additional functions

Important elements of the functional set in relation to the concept under consideration are the following points:

• The mediation function explains whatproducers, being economically isolated due to the conditions of the social division of labor, tend to find each other on the market, after which they exchange their economic activities.
• The regulatory function determines the establishment ofthe market of optimal proportions between the subjects of the economy at both the micro- and macro-levels. This happens through the expansion or narrowing of supply and demand in relation to individual markets or to the entire economic system as a whole.

Market: Definition, Species

In the modern economy it is customary to classifymarkets for a number of features. For example, by designation in the economy, the market for goods, money, and labor is allocated. Market - definition (economy), which is based on versatility. Therefore, the second criterion for classification is the process of organizing exchange, according to which it is customary to distinguish between wholesale and retail markets. In addition, there is a classification by forms of ownership, which implies the existence of private, cooperative, as well as state markets. Division by industry implies the existence of automobile, computer, agricultural and other types of market structures. An important classification of markets is the division of the system in accordance with the types of competition. So, it is customary to isolate markets for perfect and imperfect competition. It is important to note that the latter are subject to classification on the oligopoly, monopolies and markets of monopolistic competition.