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Types of Agricultural Markets
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Oligopoly
Few sellers dominate the market, high barriers to entry, interdependent decision-making. Examples: seed and fertilizer producers, agricultural machinery companies.
Monopoly
Single seller, unique product, high barriers to entry, price maker. Examples: patented GMO seed provider, regional electric utility company.
Forward Market
Contracts are customized between two parties to buy or sell an asset at a specified future time. Examples: Custom-grown crops, tailor-made delivery schedules for produce.
Informal Market
Transactions occur outside of official channels, without government oversight. Examples: Roadside produce sales, non-taxed transactions between individuals.
Factor Market
Market for inputs needed in the production of goods or services, including labor, land, and capital. Examples: Labor market for farm workers, land leasing for agriculture.
Direct Marketing
Producers sell directly to consumers without intermediaries. Examples: Farm stands, community-supported agriculture (CSA) programs.
Commodity Exchange
Standardized commodities are traded. Examples: Chicago Mercantile Exchange (CME), Multi Commodity Exchange of India (MCX).
Monopolistic Competition
Many sellers, differentiated products, some barriers to entry, and some control over price. Examples: organic food markets, local food brands.
Bilateral Monopoly
Single seller, single buyer, negotiation determines price. Examples: A large farm selling exclusively to a single processor, a unique machinery maker dealing with one customer.
Contestable Market
Low entry and exit barriers, no single company can dominate the price, threat of potential competition. Examples: Online agricultural product platforms, pop-up farmer's markets.
Futures Market
Contracts are made now to buy or sell an asset at a future date. Examples: Cattle futures, corn futures.
Green Markets
Focused on trading environmentally-friendly and sustainable products. Examples: Organic food markets, fair trade coffee markets.
Monopsony
Single buyer, many sellers, buyer controls the market and price. Examples: large food retailer contracting with local farmers, government purchasing grain.
Specialty Markets
Focus on specific types of products or audiences. Examples: Farmers’ markets specializing in organic products, niche markets for heritage animal breeds.
Vertical Market
Catering to the needs of a specific industry vertical. Examples: Poultry industry supply chain, greenhouse technology providers.
Spot Market
Transactions are made immediately, goods are exchanged on the spot. Examples: Local grain market, auction market for livestock.
Auction Market
Buyers bid and the highest bidder purchases the product. Examples: Livestock auctions, timber auctions.
Wholesale Market
Products are sold in large quantities at a discount. Examples: Regional produce markets, bulk feed suppliers.
Perfect Competition
Infinite buyers and sellers, no barriers to entry, homogenous products, and perfect information. Examples: small-scale agriculture markets, farmer's markets.
Black Market
Illegal trading of goods and services, usually to avoid taxes or due to prohibition. Examples: Illicit trade of exotic animals, illegal pesticide markets.
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